Ethereum chosen by DBS for new wave of tokenised in institutional products

Singapore’s largest bank, DBS, is widening its digital asset services by introducing tokenised structured notes on the Ethereum blockchain.

This marks a significant step in bringing traditionally exclusive investment products to a broader set of investors.

The bank made the announcement on Thursday, stating that these structured notes, typically reserved for high-net-worth individuals, will now be available in more accessible denominations.

Structured notes are usually custom-built debt instruments requiring a minimum investment of around $100,000. They are known for being illiquid and complex, often tailored to meet individual investment strategies. 

By launching tokenised versions in $1,000 units, DBS aims to transform these instruments into more flexible and tradable assets, which can be more easily managed within diversified portfolios.

This move comes after DBS first launched crypto-linked structured notes in September 2024. The bank also introduced crypto options trading at that time. 

According to DBS, there has been robust interest in these offerings, with more than $1 billion in trades conducted in the first half of 2025. The trade volume rose by almost 60% from the first to the second quarter of this year.

The initial focus will be on tokenising cash-settled participation notes linked to cryptocurrency performance. These instruments offer investors cash payouts if crypto prices rise, without requiring them to directly hold or manage digital currencies. 

The structure also includes mechanisms to help reduce losses in the event of a downturn in crypto prices.

The tokenised structured notes will be distributed only to accredited and institutional investors. DBS has partnered with Singapore-based digital investment platforms ADDX, DigiFT, and HydraX to offer the products. These platforms are regulated locally and cater to sophisticated investors.

“Through tokenised notes, DBS will provide accredited and institutional investors flexibility in managing sophisticated portfolios. The notes will be available to eligible traders through third-party investment platforms and exchanges”, the bank said in its press release.

DBS’s entry into this space is part of a broader initiative to simplify access to complex financial products using blockchain technology. The bank has been investing in tokenisation efforts since 2021. 

The Head of Foreign Exchange and Digital Assets for Global Financial Markets at DBS, Li Zhen, commented that the launch addresses growing institutional demand for exposure to digital assets. 

“Asset tokenisation is the next frontier of financial markets infrastructure. Since 2021, DBS has been active in scaling this ecosystem by fostering responsible innovation, enabling tokenisation to meet real market demand and make financial markets more efficient and accessible”, he stated.

Building on a strong blockchain foundation

The structured notes announcement is not DBS’s first venture into blockchain-based financial services. In October 2024, the bank introduced blockchain-based institutional banking. 

This service allows clients to carry out real-time settlements using smart contracts on a distributed ledger, an advancement aimed at improving efficiency in large transactions.

A month later, in November, DBS collaborated with the Singapore unit of Paxos to roll out a stablecoin backed by the US dollar.

These moves reflect DBS’s broader commitment to exploring the potential of digital assets and blockchain to reshape traditional finance.

DBS did not specify why the Ethereum blockchain was selected for this new initiative. It also did not provide details about how the tokenised notes would be issued. 

Ethereum is one of the most widely used blockchains for tokenisation and smart contracts, offering a familiar and scalable infrastructure. However, further clarification on technical implementation was not provided at the time of publication, despite inquiries from media outlets.

DBS said that beyond the crypto-linked products, it plans to extend tokenisation to other types of structured notes. These include equity-linked and credit-linked notes, which are also traditionally bespoke financial instruments requiring significant minimum investments.

The bank’s approach appears to be centred around making these advanced financial instruments more liquid and manageable, without compromising their sophistication. According to Li Zhen, the crypto-linked notes are just the beginning. 

“With this initiative, a broader segment of investors can now tap our digital asset ecosystem to build exposure to the asset class,” he said.

This move is timely given the shifting landscape of Singapore’s investment community. In 2024 alone, the number of single family offices in the country exceeded 2,000, a 43% increase from the year before. 

This reflects rising demand for more advanced digital financial products among sophisticated investors.

A strategic play backed by strong performance

DBS’s expansion into the tokenisation space comes from a position of notable strength. In 2024, the bank became the first Singaporean company to cross S$100 billion in market capitalisation, ending the year at S$124 billion. 

The institution also delivered shareholder returns of 51%, marking one of its most successful years on record.

Much of this growth came from gains in its wealth management and wholesale banking sectors. Morgan Stanley analysts, as cited by Euromoney, noted that DBS was on track to achieve returns on equity of 18% in 2025.

This would justify a price-to-book valuation of two times, an indicator of the bank’s financial health and market confidence.

Despite regional challenges, including slower economic growth in China, DBS has seen strong performance in India. Its revenue from large corporate banking and services to small businesses in the country rose by 25% in 2024. 

The bank sees further potential in India, especially among small and medium-sized enterprises. These businesses are increasingly adopting digital tools, and DBS is well positioned to support them through its local branch network, which it gained through its acquisition of Lakshmi Vilas Bank in 2020.

With its established position in the region, advanced digital infrastructure, and forward-looking leadership, DBS is gearing up for a blockchain-based future. 

The bank’s Deputy CEO and CEO-designate, Tan Su Shan, has worked alongside former chief executive Piyush Gupta to guide DBS through this next phase. 

Their goal is to integrate blockchain technology across the bank’s operations and offerings, further enhancing accessibility and efficiency.

As DBS continues to digitise and democratise finance, its new tokenised structured notes mark yet another significant milestone. 

While currently limited to institutional and accredited investors, the move signals a growing trend in global finance, where traditional instruments are being reimagined for the digital era.