Ethereum News Today: DBS Launches Tokenized Structured Notes on Ethereum for Institutional Investors

DBS, Singapore’s largest bank by assets, has launched tokenized structured notes on the Ethereum blockchain, marking a significant step in its digital asset strategy. These notes provide investors with exposure to cryptocurrency price movements while offering downside protection. The tokenized products, which are available in $1,000 denominations, are being distributed through licensed digital investment platforms including ADDX, DigiFT, and HydraX, and are exclusively offered to accredited and institutional investors [1].

The move builds on DBS’s broader blockchain initiatives, including the launch of blockchain-based banking services for institutions and a USD-backed stablecoin partnership with Paxos’ Singapore arm. By leveraging Ethereum—a public and widely adopted blockchain—DBS aims to enhance transparency and efficiency in financial transactions. The use of Ethereum also aligns with industry trends toward decentralized finance and real-time settlement through smart contracts [2].

Structured notes typically require high minimum investments and are tailored to individual clients, making them illiquid and complex. DBS’s tokenized version simplifies access by reducing the investment barrier and increasing liquidity. The notes are designed to pay out in cash when cryptocurrency prices rise, allowing investors to benefit from crypto exposure without directly holding digital assets. Additionally, the structure is intended to mitigate losses when prices decline, addressing concerns about volatility [3].

The product, which began trading on September 17, 2024, alongside crypto options, has already attracted strong demand. DBS reported over $1 billion in trades executed by clients in the first half of 2025, with a nearly 60% increase from the first to the second quarter [4]. This growth highlights growing institutional interest in tokenized financial instruments and underscores the potential for structured products to bridge traditional and digital finance.

Li Zhen, head of foreign exchange and digital assets at DBS, noted that the bank has been developing tokenization initiatives since 2021 and sees this launch as a response to increasing institutional demand for digital assets. The structured notes represent one of the first market-ready products from a traditional bank that integrates public blockchain infrastructure in a live trading environment [5].

DBS’s strategy is closely aligned with Singapore’s progressive regulatory framework, which supports innovation in blockchain and digital finance. The bank’s approach demonstrates how financial institutions can leverage technology to modernize offerings while maintaining compliance with existing regulations. If successful, this model could be extended to other asset classes, further transforming the way financial instruments are issued and traded [6].

The launch of these tokenized notes reflects a broader shift in how traditional financial institutions are adapting to the digital era. As more banks explore blockchain-based solutions, the distinction between traditional finance and digital assets continues to blur. DBS’s initiative positions it as a leader in this transition, offering institutional investors a secure, transparent, and accessible way to participate in the crypto market [7].

Source: [1] DBS Bank Tokenizes Structured Notes on Ethereum for Third Party Distribution (https://www.blockhead.co/2025/08/21/dbs-bank-tokenizes-structured-notes-on-ethereum-for-third-party-distribution/)

[2] DBS Tokenized Notes on Ethereum Show Finance Turning (https://coinfomania.com/dbs-tokenized-notes-ethereum/)

[3] DBS Expands Product Shelf with Tokenized Crypto Notes (https://www.hubbis.com/news/dbs-expands-product-shelf-with-tokenized-crypto-notes)

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

[5] DBS Expands Blockchain Capabilities by Tokenising and (https://www.dbs.com/newsroom/DBS_EXPANDS_BLOCKCHAIN_CAPABILITIES_BY_TOKENISING_AND_DISTRIBUTING_STRUCTURED_NOTES)

[6] DBS Launches Tokenized Structured Notes on (https://www.binance.com/en-NG/square/post/08-21-2025-dbs-bank-launches-tokenized-structured-notes-on-ethereum-blockchain-28597665048914)