Singapore’s position as a global wealth management hub is reaching new heights, and DBS Bank, one of the city-state’s leading financial institutions, is at the forefront of this transformation. In a groundbreaking move, DBS has introduced tokenised structured notes on the Ethereum public blockchain, making them accessible to a broader pool of investors through third-party platforms such as ADDX, DigiFT, and HydraX. This marks the bank’s first foray into distributing tokenised products to non-DBS clients, reflecting both the growing appetite for digital assets and Singapore’s evolving role in the global financial landscape.
A New Era of Financial Innovation
Tokenisation, the process of converting traditional financial instruments into digital tokens on a blockchain, is being hailed as a game-changer for financial markets. For DBS, this initiative represents a significant step toward democratizing access to complex investment products. Traditionally, structured notes—a type of investment product that combines elements of bonds and derivatives—require a minimum investment of around US$100,000, limiting their accessibility to high-net-worth individuals or institutional investors. By tokenising these notes, DBS has broken them down into smaller, more affordable units of US$1,000, making them identical, easier to trade, and more fungible.
This format, according to DBS, enhances flexibility for investors, allowing them to manage their portfolios with greater resilience, especially during periods of market volatility. The first product in this series is a cash-settled cryptocurrency-linked participation note, designed to provide cash payouts when cryptocurrency prices rise while offering some protection against potential losses if prices decline. This structure caters to the growing institutional and retail interest in digital assets, a trend that has gained significant traction in recent years. 
Strong Demand Fuels Digital Asset Growth
The demand for such innovative financial instruments is evident in DBS’s recent performance figures. In the first half of 2025, the bank’s clients executed trades worth more than US$1 billion in crypto options and structured notes, with trading volumes surging by nearly 60 percent between the first and second quarters. These figures underscore the increasing appetite for digital asset exposure among investors in Singapore and beyond, as cryptocurrencies and blockchain-based solutions become more mainstream.
Li Zhen, Head of Foreign Exchange and Digital Assets at DBS Global Financial Markets, emphasized the transformative potential of tokenisation. “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” Li said on a recent announcement.
Li said that DBS’s decision is not limited to cryptocurrency-linked notes, “our first tokenised product, a crypto-linked note, also addresses the growing institutional appetite for digital assets”. The bank has plans to expand its tokenisation efforts to include equity-linked and credit-linked notes, further diversifying the range of digital investment products available to investors. This ambitious roadmap positions DBS as a leader in the rapidly evolving field of digital finance, aligning with global trends toward blockchain-based financial infrastructure.
Singapore’s Wealth Management Boom
The launch of tokenised products by DBS comes at a time when Singapore is cementing its status as a premier destination for wealth management. In 2024, the number of single-family offices—private wealth management entities established by ultra-high-net-worth families—surpassed 2,000 in the city-state, marking a 43 percent increase from the previous year. This rapid growth reflects Singapore’s appeal as a stable, well-regulated financial hub with favorable tax policies and a strategic location in the heart of Asia.
Singapore’s government has actively supported the development of its financial sector, introducing initiatives to attract global wealth and foster innovation. The Monetary Authority of Singapore (MAS) has been a key player in promoting the adoption of blockchain technology and digital assets, creating a regulatory framework that balances innovation with investor protection. This environment has encouraged institutions like DBS to experiment with cutting-edge financial products while maintaining high standards of transparency and security.
The rise in family offices and private wealth has also fueled demand for sophisticated investment products, including those tied to digital assets. As traditional and alternative investments converge, tokenisation offers a bridge between the old and new worlds of finance, providing investors with novel ways to diversify their portfolios. For Singapore, this trend reinforces its reputation as a forward-thinking financial center, capable of adapting to the needs of a global clientele.
The Broader Implications of Tokenisation
DBS’s foray into tokenised structured notes is part of a broader shift in the financial industry, where blockchain technology is increasingly seen as a tool to enhance efficiency, reduce costs, and improve access to markets. By leveraging the Ethereum blockchain—a decentralized, public ledger known for its robustness and widespread adoption—DBS ensures that its tokenised products are transparent and secure, with transactions recorded immutably on the blockchain.
One of the key advantages of tokenisation is its potential to democratize investment opportunities. By lowering the entry barrier for structured notes, DBS is enabling a wider range of investors, including accredited retail investors, to participate in markets that were previously out of reach. This aligns with broader industry efforts to make financial systems more inclusive, particularly in regions like Southeast Asia, where economic growth is creating a burgeoning class of affluent individuals seeking investment options.
Moreover, tokenisation enhances liquidity in markets for structured products. Traditional notes can be illiquid, with limited opportunities for trading or early exit. In contrast, tokenised notes can be traded on digital asset platforms, providing investors with greater flexibility to buy or sell their holdings as market conditions change. This increased liquidity could attract more participants to the market, further driving growth in Singapore’s wealth management sector.
Challenges and Risks in the Digital Frontier
Despite its promise, the tokenisation of financial products is not without challenges. Regulatory uncertainty remains a significant hurdle, as governments and financial authorities worldwide grapple with how to oversee blockchain-based assets. While Singapore’s MAS has taken a proactive stance, ensuring that tokenised products comply with existing securities laws, other jurisdictions may adopt more restrictive approaches, potentially limiting the global reach of such innovations.
Security is another concern. Although blockchain technology is inherently secure, the platforms and intermediaries involved in trading tokenised assets can be vulnerable to cyberattacks or operational failures. DBS has partnered with established third-party platforms like ADDX, DigiFT, and HydraX to distribute its tokenised notes, but ensuring the integrity of these ecosystems will be critical to maintaining investor confidence.
Additionally, the volatility of cryptocurrencies poses risks for investors in crypto-linked notes. While DBS has structured these products to mitigate potential losses, sharp declines in cryptocurrency prices could still impact returns. Educating investors about these risks and ensuring transparency in product design will be essential as tokenised assets gain traction.
A Vision for the Future
DBS’s launch of tokenised structured notes signals a bold vision for the future of finance, one where digital assets and blockchain technology play a central role in reshaping markets. As the bank continues to innovate, its efforts could set a precedent for other financial institutions in Singapore and beyond, encouraging wider adoption of tokenisation and other fintech solutions.
For Singapore, the growth of its wealth management sector and the embrace of digital finance represent a dual opportunity: to solidify its status as a global financial hub while positioning itself as a leader in the fintech revolution. The success of initiatives like DBS’s tokenised notes will depend on striking the right balance between innovation, regulation, and investor protection—a challenge that the city-state is well-equipped to meet.
As the financial landscape evolves, the impact of tokenisation on accessibility, liquidity, and market efficiency will become clearer. For now, DBS’s pioneering move offers a glimpse into a future where traditional and digital finance converge, creating new possibilities for investors and reinforcing Singapore’s role as a beacon of financial innovation in Asia.
