DBS Bank has announced it will tokenise structured notes on the Ethereum public blockchain and offer it to eligible investors on third-party digital investment platforms and digital exchanges.
ADDX, DigiFT and HydraX are the first three digital platforms that will distribute DBS’s tokenised structured notes, according to an Aug 21 announcement.
With this move, the bank says it is providing more accredited and institutional investors with “greater flexibility” in using sophisticated financial instruments to manage their portfolios.
This comes at a time when Singapore’s attractiveness as a wealth management hub has led to a growth in professional investors and family offices here, says DBS. The number of single family offices in Singapore exceeded 2,000 in 2024, up 43% y-o-y.
Structured notes are complex instruments that typically require a minimum investment of US$100,000 ($128,500). These financial instruments have their value linked to that of an underlying asset or index.
According to DBS, the structure of structured notes is often tailored to the unique requirements of each investor, such as boosting returns or reducing downside losses, making them non-fungible.
See also: DBS launches treasury tokens with Ant International
Tokenisation creates individual tokens, each representing a US$1,000 share of the original note.
“These ‘bite-sized’ tokens are also identical to each other, making them more fungible and easier to trade,” says DBS. “These characteristics enable investors to subscribe to and trade structured note tokens with greater flexibility and precision, helping them manage portfolios with greater agility and resilience amidst market volatility.”
DBS says the partnership with third-party digital platforms broadens access to accredited and institutional investors who are not DBS clients.
See also: DBS announces DBS token services, introduces blockchain powered banking for institutions
For the first token distribution, DBS will tokenise cash-settled cryptocurrency-linked participation notes for distribution across third-party digital platforms. The note structure provides investors with a cash payout when cryptocurrency prices rise, enabling them to build exposure to the asset class without having to manage any cryptocurrency.
According to DBS, the note is also structured to mitigate potential losses should cryptocurrency prices decline.
Tokenisation and distribution enable more accredited and institutional investors to access DBS’s cryptocurrency-linked structured notes, which was launched in September 2024 for eligible DBS clients, alongside cryptocurrency options trading.
DBS says demand for such instruments has been “strong”; in 1H2025, DBS clients executed over US$1 billion of trades involving these instruments, with trade volumes growing almost 60% q-o-q between 1Q2025 and 2Q2025.
Beyond cryptocurrency-linked notes, DBS will also tokenise common structured notes, such as equity-linked notes and credit-linked notes.
Li Zhen, head of foreign exchange and digital assets, global financial markets, DBS, says asset tokenisation is the “next frontier” of financial markets infrastructure. “Since 2021, DBS has been active in scaling this ecosystem by fostering responsible innovation, enabling tokenisation to meet real market demand and make financial markets more efficient and accessible.”
Li adds: “Our first tokenised product — a crypto-linked note — also addresses the growing institutional appetite for digital assets. With this initiative, a broader segment of investors can now tap our digital asset ecosystem to build exposure to the asset class.”
Options trading and structured notes will only be available to eligible accredited and institutional investors.
As at 10.26am, shares in DBS are trading 43 cents higher, or 0.86% up, at $50.44.
