Key Takeaways
- DBS launches Ethereum-based tokenized structured notes for accredited and institutional investors.
- Tokenized notes lower entry from $100K to $1K, improving accessibility and liquidity.
- First offering is a crypto-linked structured note with upside exposure and downside protection.
Singapore’s largest bank DBS, with assets under management (AUM) worth over $500 billion, according to Global Banks, has expanded its blockchain approach by releasing Ethereum (ETH) based tokenized structured notes, providing accredited and institutional investors with new portfolio management options.
DBS has partnered up with three regulated exchanges ADDX, DigiFT, and HydraX. According to the press release, DBS has decided to issue tokenized notes to meet investors’ demand, as it reported that clients have already executed over $1 billion in crypto options and structured notes trades in the first half of 2025. The announcement comes at a time amid the rising popularity of Singapore as a hub for family offices; the number of single-family offices in Singapore exceeded 2,000 in 2024, a year-over-year (YoY) increase of 43%.
Conventionally, if an investor wanted to subscribe to a structured notes product, they would have needed a minimum amount of $100,000, which made them very hard to access and less liquid. The tokenized notes offered by DBS on ETH offer these investment products in tradeable and identical $1,000 tokens, providing investors with greater flexibility. This innovation also broadens access to non-DBS-accredited and institutional clients, as they can purchase these products via third-party digital platforms.
How Does It Work?
The bank’s initial tokenized offering is a crypto-linked structured note. It is designed to give a cash dividend if the value of cryptocurrency rises while limiting possible losses if prices decrease. This structured product enables investors to obtain cryptocurrency exposure without having to personally manage digital assets or deal with high volatility.
The bank is offering tokenized crypto-linked notes; essentially, the structure is designed to give out cash dividends when the value of cryptocurrency rises and limit possible losses when the value decreases. This gives the investors exposure to crypto assets without the hassle of managing them. According to DBS, the trading volume of tokenized structured notes and options trading grew by almost 60% from Q1 2025 to Q2 2025.
Li Zhen, Head of FX and Digital Assets at DBS, emphasized the strategic importance:
Asset tokenisation is the next frontier of financial markets infrastructure. With this initiative, a broader segment of investors can now tap our digital asset ecosystem to build exposure.
Conclusion
In the future, DBS plans to issue tokenized equity-linked and credit-linked notes. The launch of structured tokenized notes showcases the convergence of blockchain and traditional finance. If the demand for such tokenized crypto-structured products surpasses expectations, we could potentially see different asset classes, such as equities and credit notes, being tokenized by DBS.
