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Singapore’s largest bank, DBS, has taken a major step in its blockchain strategy by offering tokenized structured notes on the Ethereum public network. The move signals a shift from permissioned blockchain experiments to real-world deployment on one of the most widely used decentralized platforms. By doing so, DBS is expanding access to complex financial products that were once reserved only for its private banking clients.
Moving Beyond Pilots Toward Global Markets
The announcement builds on Singapore’s Project Guardian, a Monetary Authority of Singapore (MAS) initiative that explores how tokenization can reshape capital markets. DBS has been a key participant in earlier pilots that used permissioned blockchains. Now, the bank is testing how tokenized assets can scale across open, global networks like Ethereum.
According to the bank, its debut product will be distributed through local exchanges ADDX, DigiFT, and HydraX. This marks the first time DBS is extending tokenized products to accredited and institutional investors outside of its internal client base. The decision reflects a broader trend among global financial institutions that are embracing tokenization as a way to make traditional investment instruments more flexible, tradable, and accessible.
The First Tokenized Product
The initial offering is a crypto-linked participation note. The product pays out in cash when digital asset prices rise, while also limiting downside risk. Traditionally, structured notes like these required minimum investments of around $100,000 and were often customized, making them illiquid and difficult to trade.
By breaking the instruments into $1,000 units, DBS is making them fungible and significantly more accessible. This fractionalization allows investors to incorporate these instruments into their portfolios without committing massive amounts of capital. It also enhances liquidity, as the smaller units are easier to trade on secondary markets.
“Asset tokenization is the next frontier of financial markets infrastructure,” said Li Zhen, head of foreign exchange and digital assets at DBS. “Our first tokenized product addresses the growing institutional appetite for digital assets. With this initiative, a broader segment of investors can now tap our digital asset ecosystem to build exposure to the asset class.”
Why Tokenization Matters for Investors
Tokenization of financial products like structured notes has several benefits. First, it reduces barriers to entry by lowering minimum investment requirements. Second, it improves liquidity by making securities easier to trade across multiple venues. Finally, it introduces greater efficiency, since blockchain-based settlement can streamline processes that are traditionally slow and costly.
For DBS, this strategy is not only about serving its existing private clients but also about appealing to a wider investor base. The bank pointed out that demand for structured notes has been growing rapidly. In the first half of 2025 alone, DBS clients executed more than $1 billion in trades involving these instruments, with trade volumes climbing almost 60% between the first and second quarters.
Family offices and professional investors are a particular focus. Singapore has seen a rapid rise in family offices, with the number surpassing 2,000 in 2024, up 43% year on year. These investors are increasingly seeking advanced strategies to diversify their portfolios, and tokenized instruments provide a convenient entry point into digital assets without the same volatility risks as holding cryptocurrencies directly.
Singapore’s Role as a Tokenization Hub
The move by DBS further cements Singapore’s reputation as a leader in tokenized finance. MAS has been spearheading Project Guardian to explore how tokenization can be applied across asset classes, including fixed income, foreign exchange, and funds. The regulator is also working on cross-border infrastructure projects like Global Layer One, which aims to pool global liquidity and enable smoother capital flows between markets.
By expanding from private pilots to Ethereum’s public blockchain, DBS is aligning itself with this broader regulatory vision. Using public networks not only tests the scalability of tokenized assets but also demonstrates interoperability with other financial markets that are experimenting with similar technologies.
Expanding Beyond Crypto-Linked Products
While the first structured note is tied to digital assets, DBS has signaled plans to broaden its offerings. Future products could include equity- and credit-linked notes, creating a more diverse suite of tokenized instruments. This approach reflects the bank’s strategy of gradually moving traditional financial products onto blockchain rails, with the long-term goal of building a full digital asset ecosystem.
Such developments are likely to have ripple effects across global finance. As more banks follow DBS in tokenizing complex products, investors worldwide could gain access to tools that were once reserved for high-net-worth individuals. At the same time, tokenization could bring greater transparency and efficiency to financial markets, aligning with regulators’ goals of improving accessibility and reducing systemic risks.
Looking Ahead
The tokenization of structured notes by DBS represents more than just a technological upgrade—it signals a cultural shift in traditional finance. By leveraging Ethereum’s public network, the bank is acknowledging the growing demand for open, interoperable systems that can serve a broader base of investors.
As global financial institutions experiment with tokenization, Singapore’s role as a pioneer in this space is becoming clearer. DBS’s initiative shows how banks can balance innovation with regulatory oversight, making complex products more accessible while still maintaining safeguards for investors.
For family offices, institutional investors, and accredited individuals, this development could open the door to new strategies for portfolio diversification. For the broader financial system, it marks another step toward a future where blockchain is not just a buzzword but an integral part of market infrastructure.
