Meaning and Use of Tokenization

Tokenized structured notes are financial instruments whose value depends on the performance of an underlying asset or index. DBS will make these products accessible to accredited and institutional investors.

Each tokenized note represents a tradable $1,000 portion of the original security, allowing investors to manage their portfolios with greater flexibility.

Partnerships and Platforms

DBS will distribute the tokenized notes through ADDX, DigiFT, and HydraX platforms. These collaborations enable investors to securely and transparently access the products via the Ethereum blockchain.

The first tokenized product will be crypto-linked structured notes designed to provide cash payouts when cryptocurrency prices rise. Additionally, they are structured to mitigate potential losses in case of price declines. DBS plans to tokenize equity-linked and credit-linked notes in the future as well.

Singapore’s Financial Position and Impact

Li Zhen, Head of FX and Digital Markets at DBS, commented:

“Asset tokenization is the next frontier for financial market infrastructure. Our first tokenized product addresses the growing institutional appetite for digital assets.”

Singapore has become an attractive hub for asset management, hosting over 2,000 single-family offices. DBS reported that in the first half of 2025, it executed over $1 billion in transactions through crypto-linked structured notes.

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DBS said that with the launch of these new services, institutional clients will be able to invest in crypto assets through options trading and structured notes. Crypto option contracts have a value derived from the price of the underlying cryptocurrency, allowing investors to “hedge” against the price fluctuations of the assets. These contracts give investors the right to buy or sell the assets at a pre-agreed price on a specific date.

Structured notes, on the other hand, are a type of debt instrument issued by financial institutions such as banks, and their returns are based on the underlying assets.

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Hedging against market volatility According to DBS, customers who store their BTC and ETH assets with the bank can hedge their positions against market volatility using different option structures. Customers who want to manage cryptocurrency volatility can buy a put option and have the right to sell Bitcoin at a fixed price, even if Bitcoin prices fall below the fixed price on a specified date.

Jacky Tai, Head of DBS Trading and Structuring, said that professional investors continue to increase their investment in digital assets in their portfolios. Tai added that this new service expands the company’s options in digital assets and allows customers to better manage their digital asset portfolios with advanced investment strategies.

DBS Bank continues to adopt Web3 infrastructure DBS Bank continues to increase its investment in Web3 infrastructure. On August 13, the bank launched a pilot application featuring DBS Treasury Tokens on a permissioned, EVM-compatible blockchain to enhance corporate liquidity management. On August 22, it announced another pilot application integrating blockchain technology to facilitate the distribution of government grants. The bank stated that blockchain-based grant distribution will increase efficiency and improve governance.

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