Bank Launches Tokenized Structured Notes on Ethereum

TL;DR

• Launch: DBS issues $1,000‑denominated tokenized structured notes on Ethereum, starting with crypto‑linked participation notes offering upside potential and downside protection.
• Partnerships: Distributed via ADDX, DigiFT, and HydraX to accredited and institutional investors beyond DBS’s own clients.
• Momentum: $1B+ in trades in 1H 2025 underpins plans to tokenize equity‑ and credit‑linked notes, reinforcing DBS’s blockchain leadership.
  

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DBS, the biggest bank in Singapore by assets, has introduced tokenized structured notes on the Ethereum blockchain, expanding access to intricate investment products for accredited and institutional investors. This marks the bank’s first distribution of crypto-linked structured notes to non‑DBS clients through licensed third‑party digital platforms, a significant step in its digital asset strategy.

Breaking Down the Offering

Structured notes traditionally carry steep barriers to entry, with minimum investments often exceeding $100,000, limiting their reach to high‑net‑worth individuals. By breaking these products into units of $1,000, DBS is making it easier to enter while also improving liquidity. Each token represents a fraction of the underlying structured note, making them fungible and easier to trade, rebalance, or integrate into diversified portfolios.

The first tranche will be cash‑settled cryptocurrency‑linked participation notes, delivering potential upside when digital asset prices rise, combined with features designed to reduce downside risk.

Distribution and Partnerships

To expand its pool of investors, DBS has teamed up with Singapore-licensed platforms ADDX, DigiFT, and HydraX. These partnerships allow distribution beyond the bank’s private clientele, providing greater market reach while maintaining regulatory compliance. The choice of Ethereum as the issuance platform reflects its maturity, robust developer ecosystem, and liquidity advantages.

Demand and Market Context

This move builds on DBS’s September 2024 launch of crypto‑linked structured notes and cryptocurrency options trading for its clients. In the first half of 2025 alone, DBS executed over $1 billion in related trades, almost 60% growth between Q1 and Q2. Singapore’s rise as a wealth management hub, home to over 2,000 single-family offices by 2024, provides fertile ground for innovative investment vehicles that blend traditional finance with blockchain.

Future Plans and Broader Strategy

DBS plans to tokenize additional structured products to Ethereum, such as equity- and credit-linked notes. Li Zhen, who leads Foreign Exchange and Digital Assets at DBS, referred to asset tokenization as “the next frontier of financial markets infrastructure,” highlighting its ability to enhance efficiency and market access.

This initiative complements DBS’s ongoing blockchain projects, which include real‑time payment settlements and a USD‑backed stablecoin, signalling its ambition to remain at the forefront of institutional digital asset adoption.