Ethereum News Today: DBS Launches Ethereum-Based Tokenized Structured Notes to Boost Digital Investment Flexibility

DBS Bank has launched tokenized structured notes on the Ethereum blockchain, marking a pivotal moment in the integration of traditional finance with blockchain technology. The initiative, announced on August 21, 2025, enables accredited and institutional investors to access these financial instruments via third-party digital investment platforms, including ADDX, DigiFT, and HydraX [1]. This move extends DBS’s digital asset ecosystem beyond its existing client base and responds to rising demand for investment flexibility in volatile markets.

Structured notes, typically requiring a minimum investment of USD 100,000, have been tokenized into USD 1,000 units, enhancing their fungibility and tradability. This approach allows investors to diversify their portfolios more effectively while maintaining the complexity and sophistication of the underlying instruments [1]. The first batch of tokenized notes are crypto-linked participation notes, offering exposure to cryptocurrency price movements without requiring investors to hold the underlying assets directly [1].

The launch aligns with broader trends in Singapore’s financial landscape, where the number of single family offices surpassed 2,000 in 2024. This figure reflects a growing appetite for tailored investment solutions and a more sophisticated investor base [2]. DBS’s initiative follows strong demand for crypto-linked products, with over USD 1 billion in trades executed by clients in the first half of 2025, representing a nearly 60% increase in volume from Q1 to Q2 [1].

The bank also plans to tokenize other structured notes, including those linked to equities and credit, further expanding the range of asset classes available to investors [1]. Li Zhen, Head of Foreign Exchange and Digital Assets at DBS, emphasized that tokenization represents a key innovation in financial infrastructure, leveraging the bank’s credit strength and digital capabilities to deliver more efficient and accessible investment options [1].

The Ethereum-based tokenization of structured notes is expected to boost the blockchain’s utility and liquidity, particularly on partnered platforms. By leveraging a public blockchain, DBS enhances transparency and accessibility while potentially influencing broader institutional adoption of digital assets. The initiative also underscores Singapore’s growing role as a hub for digital innovation and wealth management, supported by regulatory frameworks that encourage experimentation with new financial technologies [1].

Investors seeking to participate in these tokenized products must meet accreditation criteria and carefully evaluate the risks associated with cryptocurrency-linked instruments. The notes are designed to offer potential gains in rising crypto markets while incorporating mechanisms to mitigate losses [1].

DBS, a global leader in digital banking, has been developing its blockchain capabilities since 2021. With this latest initiative, the bank continues to reinforce its position at the forefront of financial innovation. The move reflects both institutional demand for digital assets and Singapore’s evolving regulatory environment, which supports the development of new financial infrastructure [1].

Sources:

[1] DBS expands blockchain capabilities by tokenising and distributing structured notes (https://www.dbs.com/newsroom/DBS_EXPands_blockchain_capabilities_by_tokenising_and_distributing_structured_notes)

[2] Singapore family offices exceed 2,000 in 2024, up 43% on year (The Business Times)