One of Singapore’s leading banks, DBS, has announced the launch of structured bonds tokenized on the Ethereum blockchain. This new financial product will be available on the ADDX, DigiFT, and HydraX platforms, opening opportunities for a broader range of investors.
This is reported by Finway
Tokenization of Bonds Enhances Accessibility
Structured bonds combine features of traditional bonds with derivatives, allowing their yields to be linked to various assets, including cryptocurrencies. In the traditional format, the minimum investment in such securities is $100,000. Thanks to tokenization, DBS will be able to break them into smaller denominations of $1,000, making investments more accessible for institutional and accredited investors, regardless of whether they are bank clients.
The partnership with ADDX, DigiFT, and HydraX will enable the bank to reach a wider audience beyond its own client base. This will also enhance the flexibility of trading new tokenized financial instruments.
Advantages and Prospects of Tokenized Assets
According to DBS representatives, structured bonds linked to cryptocurrencies can provide additional returns in the event of an increase in the market value of virtual assets, which are likely to form a separate indexed basket. The product’s structure also helps mitigate risks for investors in the case of a decline in crypto asset prices.
The bank plans to expand its range of tokenized bonds, including the issuance of products linked to equities and credit instruments. However, the exact timelines for implementing these plans have not yet been disclosed.
“Tokenization of assets is a new frontier in the development of financial market infrastructure. Since 2021, DBS has been actively scaling this ecosystem, fostering responsible innovation, enabling tokenization to meet real market demand, and enhancing the efficiency and accessibility of financial markets. With high credit ratings, partnership connections, and DBS’s capabilities, more investors can now take advantage of our solutions for more effective portfolio management,” said DBS Head of Foreign Exchange and Digital Assets Li Zhen.
According to the bank, in the first half of 2025 alone, clients conducted transactions with structured crypto bonds totaling $1 billion, indicating a rapid increase in demand for tokenized real-world assets. The total valuation of the global market for such assets has surpassed $270 billion for the first time.