DBS Bank, Singapore's largest financial institution, has announced the launch of tokenized structured notes on the Ethereum blockchain, available to accredited and institutional investors.
DBS's Tokenization Initiative
DBS Bank announced its collaboration with crypto exchanges ADDX, DigiFT, and HydraX for a tokenization initiative. Through this latest push, the bank will offer accredited investors access to tokenized structured notes on the Ethereum public blockchain.
Tokenized Financial Instruments
The debut product is a crypto-linked note that cashes out when digital assets rise in price, capping downside exposure. Structured notes typically require at least $100,000 investments, are customized, and thus aren't fungible. Tokenization breaks down the original note into individual tokens, each representing a $1,000 share, enhancing fungibility and easing trade.
Singapore's Crypto Initiatives
This move aligns with Singapore's growing interest in cryptocurrencies to foster innovation and economic stability. For instance, Volkswagen Company Singapore has partnered with FOMO Pay to accept cryptocurrency payments for cars and services, marking one of the largest mainstream adoptions of cryptocurrencies in the region.
The launch of DBS Bank's tokenized structured notes underscores the trend of integrating digital assets into financial markets, enhancing Singapore's initiatives in supporting crypto innovations.
