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DBS Bank is enhancing the liquidity and accessibility of structured notes via tokenization, converting instruments with a minimum entry requirement of $100,000 into fractional tokens priced at $1,000.
DBS, the largest bank in Singapore, has unveiled a program to tokenize structured notes on the Ethereum blockchain. These offerings will be accessible to accredited and institutional investors through platforms such as ADDX, DigiFT, and HydraX, thereby broadening access to this asset class for users who are not direct clients of the bank.
A structured note is a sophisticated, fixed-term debt instrument issued by a financial institution, with returns tied to a specified performance scenario of one or more underlying assets.
The initial tokenized product from DBS will be cash-settled cryptocurrency-linked participation notes. This structure enables investors to benefit from increasing crypto prices without directly owning the underlying assets, while also integrating mechanisms to reduce potential losses in case of price drops.
The tokenization process divides a structured note into individual tokens, each representing a $1,000 portion of the original asset, making them fungible and greatly simplifying trading. Investors will have the opportunity to submit official purchase requests directly to DBS during the initial issuance at a predetermined price, as well as trade the tokens with considerable flexibility and accuracy, facilitating more effective portfolio management amid market fluctuations.
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The press release indicates that the demand for such instruments is consistently rising. In the first half of 2025, DBS clients traded over $1 billion in cryptocurrency options and structured notes, with trading volume in Q2 increasing by nearly 60% compared to Q1. Looking ahead, DBS intends to tokenize additional types of structured notes, including equity-linked and credit-linked notes.
Li Zhen, Head of Foreign Exchange and Digital Assets at DBS, stated that asset tokenization signifies the next frontier in the evolution of financial market infrastructure.
This initiative also addresses the increasing demand from professional investors in Singapore, where the number of family offices grew by 43% in 2024, exceeding 2,000.
Family offices throughout Asia are boosting their allocations to digital assets, as reported by Reuters, with a notable rise in crypto demand seen in Singapore, Hong Kong, and mainland China.
A detailed analysis of blockchain industry development by jurisdiction revealed that Singapore ranked among the global leaders in Web3 technologies in 2024.
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