Ethereum News Today: DBS Launches Ethereum-Based Tokenized Structured Notes to Boost Investor Access

DBS Bank has launched tokenized structured notes on the Ethereum public blockchain, marking a major step forward in its blockchain strategy and broadening access to sophisticated financial products. The offering, which builds on Singapore’s Project Guardian pilot programs, represents a transition from private, permissioned blockchains to a public, decentralized network. This shift reflects DBS’s ongoing efforts to test the scalability and global applicability of tokenized assets in a real-world setting [1].

The structured notes are crypto-linked participation instruments that provide cash payouts when digital asset prices rise, while limiting downside risk. Traditionally, structured notes require minimum investments of $100,000 and are often customized, making them non-fungible and difficult to trade. By tokenizing the notes into $1,000 units, DBS has made the instruments fungible and more accessible, enabling greater liquidity and flexibility for investors [1]. These products are being distributed through local exchanges ADDX, DigiFT, and HydraX, making them available to accredited and institutional investors beyond DBS’s existing client base.

The move is part of a broader trend of financial institutions exploring the use of blockchain for asset tokenization. DBS has been an active participant in Singapore’s Project Guardian initiatives, which have tested tokenization in areas such as fixed income, foreign exchange, and fund management. The latest offering on Ethereum underscores the potential of public blockchains to support cross-border financial infrastructure and improve transparency for global investors [1].

According to Li Zhen, head of foreign exchange and digital assets at DBS, the bank sees asset tokenization as a transformative force in financial markets. “Our first tokenized product addresses the growing institutional appetite for digital assets,” Zhen stated. “With this initiative, a broader segment of investors can now tap our digital asset ecosystem to build exposure to the asset class” [1]. The offering is expected to be particularly attractive to family offices and professional investors, who are increasingly seeking innovative ways to diversify their portfolios.

Demand for these instruments has already shown strong momentum. In the first half of 2025, DBS clients executed over $1 billion in trades involving tokenized assets, with trade volumes increasing nearly 60% from Q1 to Q2 [1]. This growth highlights the growing interest in tokenized financial products and the potential for such instruments to reshape the investment landscape.

While the initial offering focuses on crypto-linked notes, DBS has indicated plans to expand into equity- and credit-linked structured products in the future. The Ethereum-based platform provides a scalable and programmable infrastructure that can support a range of financial innovations, including automated settlement and redemption processes [1]. These features can enhance efficiency and reduce operational complexity for both issuers and investors.

DBS’s initiative also aligns with Singapore’s broader efforts to position itself as a global hub for tokenized finance. The Monetary Authority of Singapore (MAS) has been instrumental in developing regulatory frameworks and cross-border infrastructure, such as the Global Layer One platform, to support the growth of tokenized assets [1]. As the financial industry continues to explore the possibilities of blockchain technology, DBS’s move to Ethereum signals a shift toward more open and interoperable financial ecosystems.

Source: [1] DBS Launches Tokenized Structured Notes on Ethereum, Expanding Investor Access (https://www.coindesk.com/markets/2025/08/21/dbs-launches-tokenized-structured-notes-on-ethereum-expanding-investor-access)

[2] Bitcoin, Stocks Hit by $400B Liquidity Drain From U.S. (https://www.coindesk.com/markets/2025/08/20/bitcoin-stocks-hit-by-usd400b-liquidity-drain-from-u-s-treasury-account-not-jackson-hole-analysts)