DBS launches tokenized structured notes on Ethereum as institutional demand soars

DBS Bank has launched tokenized structured notes on the Ethereum blockchain, marking a major milestone in Singapore’s financial sector.

The move makes the country’s largest bank by assets one of the first global institutions to expand access to complex investment products through blockchain, lowering entry barriers for accredited and institutional investors seeking exposure to crypto-linked strategies.

Lower barriers with tokenization

Traditionally, structured notes are complex debt securities that come with a steep minimum investment — typically around $100,000.

By introducing tokenized structured notes in $1,000 denominations, DBS is lowering that threshold dramatically, allowing investors to trade, diversify, and manage positions with greater flexibility.

“This innovation demonstrates how tokenization can break down barriers in capital markets,” said Li Zhen, Head of FX and Digital Assets for Global Financial Markets at DBS.

“We have been building toward this since 2021, and the response from clients has reinforced that tokenized structured notes are the future of investment products.”

Strong Demand Driving Expansion

The launch comes at a time of growing institutional appetite for digital assets. DBS reported that its clients executed more than $1 billion in trades in the first half of 2025, with demand rising nearly 60% from Q1 to Q2.

Initially, the bank will tokenize cash-settled crypto-linked participation notes, which provide payouts when crypto prices rise while limiting downside risk during market declines.

According to DBS, this approach lets investors gain crypto exposure without directly managing digital wallets or assets.

While the initial rollout focuses on crypto-linked notes, DBS confirmed that tokenized structured notes will extend to equity-linked and credit-linked notes as well.

This aligns with the bank’s broader blockchain strategy, which already includes:

• Blockchain-based banking for institutions (launched in Oct. 2024), enabling real-time settlements via smart contracts.

• A USD-backed stablecoin developed with Paxos Singapore in Nov. 2024.

These steps signal DBS’s commitment to building a full digital asset ecosystem for institutional finance.

Exclusive access for accredited investors

For now, DBS clarified that tokenized structured notes will only be available to accredited and institutional investors.

Distribution will take place through Singapore-licensed digital platforms including ADDX, DigiFT, and HydraX — all known for their expertise in tokenized securities.

While DBS chose Ethereum as the underlying blockchain, details about issuance methods or technical structures remain undisclosed.

Still, Ethereum’s dominance in tokenization and smart contract infrastructure makes it a natural choice.

The move has been praised by industry watchers. Lawrence Wintermeyer, chair of GBBC Digital Finance, told CoinDeskin a recent panel that tokenization is “the most transformative trend in capital markets since securitization,” noting that banks like DBS are leading the charge.

Similarly, Bloomberg Intelligence’s Jamie Coutts highlighted that tokenized products could grow into a multi-trillion-dollar market by the end of the decade, with structured notes a prime candidate for disruption.

Building the future of digital finance

DBS’s embrace of tokenized structured notes reflects a wider trend of global banks experimenting with blockchain-backed financial products.

From JPMorgan’s Onyx platform to HSBC’s tokenized gold offerings, tokenization is emerging as a powerful bridge between traditional finance and decentralized ecosystems.

By opening high-barrier investment products to a broader pool of accredited investors, DBS is positioning itself at the forefront of Asia’s digital asset revolution.

As Li Zhen concluded:

“Tokenized structured notes are not just a new product — they represent a new way of thinking about accessibility, liquidity, and the future of investment banking.”

DBS Bank’s bold leap into tokenized structured notes on Ethereum is redefining access to digital investments.

By making tokenized structured notes available in smaller denominations, the bank is breaking barriers for accredited investors.

Experts say tokenized structured notes could revolutionize traditional finance, fueling liquidity, transparency, and wider adoption across global markets.