Singapore – DBS Bank, a leading financial group in Southeast Asia, has just announced a groundbreaking plan to apply blockchain technology to traditional financial products. The bank will officially launch a program to tokenize structured notes on the Ethereum platform, marking a significant step in its financial digitization strategy.
First Product
According to DBS’s announcement, the first tokenized structured product will be a cryptocurrency-linked bond issued on the Ethereum blockchain. This product will be distributed through strategic partner platforms, including ADDX, DigiFT, and HydraX.
Li Zhen, a representative of DBS, stated:
“This is a significant advancement in modernizing financial infrastructure. We are responding to the increasing demand from institutions for products linked to digital assets, which offer high growth potential while ensuring effective risk management.”
How It Works
One of the most important breakthroughs of this initiative is that DBS has successfully lowered the investment threshold significantly. Instead of the traditional minimum investment of $100,000, investors now only need $1,000 per token to participate.
The bond’s operating mechanism is designed quite elegantly: the product will yield returns when the value of the cryptocurrency increases, while also integrating a capital protection mechanism to limit risks when the market declines. This creates a perfect bridge between traditional asset management methods and the rapidly developing world of digital asset economics.
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Impact on the Financial Market
DBS’s move is not just a new product; it also reflects a long-term vision for democratizing complex financial products. Reducing the minimum investment will expand access opportunities for many individual and small institutional investors, making it easier for them to diversify their portfolios.
This initiative also reinforces DBS’s leading position in the blockchain finance sector in Asia, while contributing to the development of the global digital finance ecosystem.
