DBS Bank Tokenizes Structured Notes on Ethereum for Third-Party Distribution

DBS Bank will tokenize structured notes on the Ethereum blockchain and distribute them through third-party digital investment platforms, marking the Singapore-based lender's first token distribution initiative as institutional demand for digital assets grows.

According to an announcement today, the bank has partnered with digital platforms ADDX, DigiFT, and HydraX to offer tokenized structured notes to accredited and institutional investors, including those who are not existing DBS clients. The move expands access to sophisticated financial instruments that typically require minimum investments of $100,000.

DBS will initially tokenize cryptocurrency-linked participation notes that provide cash payouts when crypto prices rise while offering downside protection. The tokenization process breaks down individual notes into $1,000 tokens, making them more fungible and easier to trade than traditional structured products, DBS explained.

The initiative comes as DBS clients have executed over $1 billion in trades involving crypto options and structured notes in the first half of 2025, with trading volumes growing almost 60% from Q1 to Q2. The bank launched cryptocurrency-linked structured notes for eligible clients in September 2024.

According to DBS, citing The Business Times reporting, Singapore's wealth management sector has experienced significant growth, with single family offices exceeding 2,000 in 2024, up 43% from the previous year. This expansion has driven demand for alternative investment products and digital asset exposure among professional investors.

"Asset tokenisation is the next frontier of financial markets infrastructure," said Li Zhen, head of foreign exchange and digital assets at DBS Global Financial Markets, who noted the bank has been developing tokenization capabilities since 2021 as part of its digital asset ecosystem expansion.

Beyond crypto-linked products, DBS plans to tokenize traditional structured notes including equity-linked and credit-linked instruments. The Ethereum-based tokens represent individual shares of underlying notes, enabling investors to trade with greater precision and flexibility.

The tokenization approach addresses limitations of traditional structured notes, which are often customized for individual investors and therefore difficult to trade. By creating standardized tokens backed by DBS's credit rating, the bank aims to improve liquidity and accessibility for institutional investors seeking portfolio diversification.