DBS, Singapore’s largest bank, has introduced tokenized structured notes on the Ethereum public blockchain as part of its broader blockchain strategy. The initiative is being positioned as a significant step in opening up complex financial products to a wider pool of investors through digital channels.
The initial rollout is being directed at accredited investors on platforms such as ADDX, DigiFT, and HydraX, with plans to later extend availability across other third-party digital investment platforms. By leveraging blockchain, the bank is seeking to expand participation in instruments that were previously limited to its private banking clientele.
Tokenized crypto-linked notes
The bank’s first offering under this framework is a set of crypto-linked structured notes. These instruments provide investors with exposure to digital assets through the bank’s ecosystem without the need to directly hold cryptocurrencies. The payout is structured in cash, tied to the performance of underlying crypto prices. At the same time, the product has been designed with mechanisms intended to mitigate losses in the event of a market downturn.
DBS had previously ventured into crypto-linked structured notes and crypto options trading in September 2024. The new tokenized versions represent a continuation of that strategy, embedding these offerings within a blockchain-based infrastructure.
Responding to investor demand
Market appetite has been one of the driving factors behind this move. The bank indicated that in the first half of 2025, its clients executed more than US$1 billion in trades involving such instruments. Trading activity was said to have surged by almost 60 percent between the first and second quarters of 2025. This increase in volumes underscored the growing interest among both institutional and accredited investors for structured exposure to crypto assets.
In addition to crypto-linked notes, DBS is preparing to tokenize other structured products such as equity-linked and credit-linked notes. The intent is to gradually broaden the spectrum of tokenized financial instruments available to investors while also aligning with Singapore’s larger ambition of being a hub for digital asset innovation.
Aligning with Singapore’s regulatory direction
This development is consistent with the regulatory and industry experimentation being conducted in Singapore. The Monetary Authority of Singapore (MAS) has been advancing trials under its Project Guardian initiative, which explores how asset tokenization can be embedded into existing financial market infrastructure. The project seeks to validate how blockchain can improve efficiency, transparency, and accessibility across the investment landscape.
Industry observers have noted that the move by DBS reinforces Singapore’s positioning as one of the leading jurisdictions in tokenized finance. By launching its first blockchain-based structured note, the bank is aligning its commercial strategy with broader market trends while addressing the increasing appetite for digital assets.
Looking ahead
DBS executives have described asset tokenization as the next stage in financial market infrastructure, with tokenized structured notes acting as a bridge between traditional finance and emerging digital markets. The introduction of crypto-linked tokenized notes is seen as a response to growing institutional interest, as well as a mechanism to broaden investor participation in innovative products.
As the rollout expands beyond initial digital platforms, the bank is expected to play a pivotal role in shaping how tokenized financial products are adopted in Singapore and potentially across other jurisdictions. Market participants believe that the blend of regulatory clarity, investor demand, and financial innovation places the city-state in a strong position to lead the next wave of tokenized finance globally.
