DBS Bank, Singapore's largest lender, has introduced tokenized structured notes on the Ethereum public blockchain, a move designed to broaden access to sophisticated financial instruments. Traditionally requiring substantial minimum investments, often around $100,000, these structured notes are now being offered in more manageable $1,000 units. This fractionalization enhances their fungibility and tradability, making them accessible to a wider range of accredited and institutional investors.
This initiative aligns with Singapore's ambition to become a global hub for tokenized finance, building on efforts like the Monetary Authority of Singapore's (MAS) Project Guardian, which explores tokenization and cross-border infrastructure. Structured notes typically combine capital protection with derivative-linked returns. By tokenizing them, DBS is making these complex products more accessible and liquid.
The inaugural offering is a crypto-linked participation note. This note is structured to provide cash payouts when digital asset prices increase, while also incorporating features to mitigate potential losses. The use of Ethereum's public blockchain leverages its smart contract capabilities for programmable and self-executing financial instruments, aiming for real-time settlement, automated compliance, and improved liquidity.
The market has shown a strong appetite for such innovations. In the first half of 2025, DBS clients executed over $1 billion in trades involving crypto-linked structured notes and options. Trading volumes saw a significant surge of nearly 60% from the first to the second quarter of the year, indicating a growing demand for advanced digital asset solutions among investors.
This development represents a significant step in integrating traditional finance with the digital asset landscape. By lowering entry barriers and increasing liquidity, DBS is expanding its product offerings and contributing to the evolution of financial markets. The bank plans to extend this tokenization approach to other types of structured notes, including equity-linked and credit-linked instruments, further solidifying its position in financial innovation.