The landscape of investment opportunities in Singapore is undergoing a transformative change, thanks to DBS, the country’s largest bank. By introducing tokenized structured notes on the public Ethereum blockchain, DBS is broadening access to sophisticated financial products that were previously exclusive to private clients.
Revolutionizing Access to Financial Products
Through a recent announcement, DBS stated its intent to distribute these innovative financial instruments on local exchanges, including ADDX, DigiFT, and HydraX. This marks a significant milestone as it allows accredited and institutional investors to explore tokenized products beyond DBS’s own client base.
The Importance of Tokenization
Tokenization provides a means of converting traditional financial instruments into digital units, making them more accessible. DBS revealed that structured notes typically require a minimum investment of $100,000 and are often custom-made, making them non-fungible. However, by breaking these instruments into smaller segments of $1,000, DBS has made them interchangeable and easier to trade, thereby enhancing portfolio management flexibility.
Market Demand and Growth
The demand for these novel instruments has surged, as investors express interest in incorporating advanced strategies into their digital asset portfolios. In the first half of 2025 alone, DBS customers executed over $1 billion in transactions with these tokenized structures, with trading volumes showing a staggering 60% increase between the first and second quarters of 2025.
Impact on Family Offices and Investors
This initiative is particularly significant for family offices and professional investors, which have been on a rapid rise in Singapore. The number of single-family offices in the city-state surpassed 2,000 in 2024, reflecting a 43% increase compared to the previous year. This growing segment underscores the changing dynamics in investment preferences and the appetite for innovative financial solutions.
Singapore’s Role in Tokenized Finance
As Singapore deepens its position as a hub for tokenized finance, the Monetary Authority of Singapore (MAS) is actively promoting industrial trials through initiatives like Project Guardian. This project explores asset tokenization across sectors such as fixed income, foreign exchange (FX), and funds, while emphasizing the development of cross-border infrastructures like Global Layer One to enhance global liquidity.
A Broader Vision for Financial Innovation
DBS has been at the forefront of these initiatives, often engaging with permissioned blockchains before expanding to open chains. While the initial focus is on crypto-related notes, DBS has also announced plans to tokenize more traditional equity and credit-related notes, reflecting its commitment to supporting a wider digital asset ecosystem.
Future Directions in Asset Tokenization
Li Zhen, the head of foreign exchange and digital assets at DBS, indicated that “asset tokenization represents the next frontier in financial market infrastructure.” He further emphasized that their first tokenized product aims to address the increasing institutional demand for digital assets, allowing a broader range of investors to gain exposure to this novel asset class.
In conclusion, DBS’s latest venture into tokenized structured notes is not just a shift in product offerings; it is a reflection of the evolving investment landscape in Singapore, opening doors for more diverse and accessible financial options.
