Ethereum News Today: DBS Tokenizes Structured Notes on Ethereum to Expand Crypto Access for Investors

DBS Bank, Singapore’s largest financial institution, is advancing a new wave of financial innovation through the tokenization of structured notes on the Ethereum blockchain [1]. This initiative, which involves partnerships with ADDX, DigiFT, and HydraX, marks a strategic move to expand access to structured products for qualified investors via crypto investment platforms and exchanges [1]. Li Zhen, Head of DBS’ External Trade and Digital Markets, has highlighted asset tokenization as a transformative step for financial market infrastructure, with the first offering featuring a structured note linked to cryptocurrency [1].

Structured notes, which derive their value from underlying assets or indices, are being reimagined as blockchain-based tokens without altering their core structure. These products typically require a minimum investment of $100,000 and offer tailored risk-return profiles to meet diverse investor needs [1]. The tokenized version introduces fractional ownership, with each note representing an interchangeable $1,000 share, making it easier for institutional and qualified investors to manage their portfolios [1].

The initial cryptocurrency-linked tokenized notes are designed to generate cash returns when prices rise, while also incorporating features to limit losses in bear markets. This dual benefit aims to appeal to investors seeking growth opportunities while managing downside risks [1]. In the first half of the year, DBS clients transacted over $1 billion in cryptocurrency-linked structured notes, underscoring strong demand for digital asset-linked investments [1].

DBS has also outlined plans to extend its tokenized offerings to equity-linked and credit-linked structured notes, broadening its product range and catering to a spectrum of risk profiles. This diversification reflects the bank’s ambition to leverage blockchain technology across various asset classes, reinforcing its leadership in digital finance [1].

The initiative aligns with Singapore’s growing reputation as a regional asset management hub, supported by a robust regulatory environment that fosters innovation while maintaining stability. Over 2,000 single-family offices in the city-state are positioned to benefit from such advancements in asset tokenization [1].

By expanding distribution channels through digital platforms, DBS aims to enhance the speed and efficiency of investor access. The bank’s leadership sees tokenization not only as a technological innovation but as a potential new standard in financial market infrastructure. This approach underscores DBS’s proactive role in shaping the future of digital finance, particularly in Asia [1].

Sources:

[1] Blockchain News, Singapore's Regulatory Framework Boosting Digital Asset Innovation (https://blockchain.news/news/singapore-regulatory-framework-boosting-digital-asset-innovation)

[2] AInvest, Blockchain Real Estate Tokenization: How FETH and Decentralized Platforms Are Reshaping Commercial Property Liquidity (https://www.ainvest.com/news/blockchain-real-estate-tokenization-feth-decentralized-platforms-reshaping-commercial-property-liquidity-2508-99/)

[3] Hubbis, HUBBIS INVESTMENT FORUM - HONG KONG 2025 (https://hubbis.com/event/hubbis-investment-forum-hong-kong-2025-2025-9-24/)