tl;dr
DBS Bank has launched tokenized structured notes on the Ethereum blockchain, transitioning from permissioned blockchains to a public network to broaden investor access. These crypto-linked participation notes pay out in cash when digital asset prices rise and limit downside risk. By tokenizing notes...
DBS Bank has launched tokenized structured notes on the Ethereum blockchain, marking a significant step toward expanding investor access to complex financial products. Building on Singapore’s Project Guardian tokenization pilots, this initiative shifts from permissioned blockchains to Ethereum’s public network, as banks explore scaling tokenized assets across global markets.
The new crypto-linked participation note offered by DBS pays out in cash when digital asset prices rise, while also limiting downside exposure. By tokenizing these notes into $1,000 units, the bank makes them fungible and easier to trade, attracting family offices and professional investors interested in flexible portfolio management.
Traditionally, structured notes require a minimum investment of $100,000 and are often customized, making them non-fungible. DBS’s approach democratizes access by breaking down notes into smaller, more tradable units, appealing to a broader investor base beyond the bank's private clients. The notes will be distributed through Singapore exchanges ADDX, DigiFT, and HydraX, marking DBS's first offering of tokenized products to accredited and institutional investors outside its direct clientele.
Demand for these instruments remains strong, with DBS clients executing over $1 billion in trades involving structured notes during the first half of 2025, and trade volumes growing nearly 60% from Q1 to Q2 2025. This growth aligns with the rapid expansion of family offices in Singapore, which exceeded 2,000 in 2024, up 43% year on year.
This move reinforces Singapore’s position as a leading hub for tokenized finance, supported by the Monetary Authority of Singapore’s initiatives like Project Guardian that foster industry collaboration on asset tokenization and infrastructure development such as the Global Layer One project. DBS has been actively participating in these programs, initially using permissioned blockchains before expanding into public platforms like Ethereum.
While the first product focuses on crypto-linked notes, DBS plans to extend tokenization to traditional equity- and credit-linked notes. Li Zhen, head of foreign exchange and digital assets at DBS, emphasized the significance of asset tokenization as the next frontier in financial markets infrastructure, opening new opportunities for institutional investors to engage with digital assets through DBS’s broader ecosystem.