New Era for Institutional Investors: DBS Bank Launches First Tokenized Note
The biggest bank in Singapore, DBS, declared on Thursday that it will use Ethereum to tokenize structured notes. Eligible traders on cryptocurrency exchanges and investment platforms will have access to these notes. According to the press announcement, the bank has contracts with three platforms to distribute the tokenized notes: ADDX, DigiFT, and HydraX.
Asset tokenisation is the next frontier of financial markets infrastructure. Our first tokenised product, a crypto-linked note, addresses the growing institutional appetite for digital assets.
Li Zhen, head of foreign exchange and digital markets at DBS
DBS Bank Blends Traditional Finance With Crypto via Tokenized Notes
The value of structured notes is correlated with that of an index or underlying asset. Frequently, its structure is modified to satisfy the specific needs of an investor, such as increasing profits or decreasing downside losses. According to DBS, their normal minimum investment is $100,000. In order to offer investors a cash dividend in the event that cryptocurrency prices increase, DBS will tokenize crypto-linked structural notes for its maiden token distribution. In the event that cryptocurrency prices fall, they are also set up to minimize possible losses.
DBS Taps Into Singapore’s Wealth Boom With Tokenized Structured Notes
A fungible $1,000 part of the original note is represented by each tokenized note. DBS hopes to draw accredited and institutional investors with more portfolio management flexibility by offering tokenized structural notes. The bank claims that as Singapore grows in popularity as a wealth management hub, it now has over 2,000 single-family offices.
Beyond cryptocurrency-linked notes, DBS will also tokenise common structured notes such as equity-linked notes and credit-linked notes,
the release
For more up-to-date crypto news, you can follow Crypto Data Space.
