DBS Bank, the largest lender in Southeast Asia, says tokenised finance is set to become a defining force in the future of global financial markets. According to Rachel Chew, Group Chief Operating Officer and Head of Digital Currencies at DBS, tokenisation allows assets to be converted into smaller digital units on a blockchain, enabling money and financial instruments to move and settle at any time of the day, including nights, weekends, and public holidays. This marks a significant departure from traditional financial systems that operate only within fixed banking hours.
The bank’s involvement in digital asset innovation began in 2016 through participation in Project Ubin, an initiative led by the Monetary Authority of Singapore. DBS has since taken part in several key projects, including Project Bloom, which explores tokenised commercial bank money and stablecoins. Building on this experience, DBS launched its institutional grade digital exchange in 2020, offering custody, trading, and settlement services for digital assets along with its core banking capabilities.
DBS Token Services now provides institutional clients with advanced blockchain enabled functions such as programmable payments, real time settlement, and tokenised deposits. This model enhances liquidity, lowers barriers to entry through fractional ownership, and allows investors greater access to high quality assets. Clients gain improved efficiency, faster settlement cycles, and a reduction in operational risks typically associated with traditional market infrastructure.
However, regulatory uncertainty remains the largest challenge facing the widespread adoption of tokenised finance. There is still no universally accepted definition of digital money, and regulatory frameworks differ significantly across jurisdictions. While progress has been made in some regions, the lack of coordinated global standards limits cross border interoperability and slows the adoption of tokenised financial products.
Despite these hurdles, DBS believes the advantages are compelling enough to drive industry wide transformation. With collaboration among regulators, financial institutions, and market participants, tokenisation could deliver greater liquidity, more accessible investment opportunities, and financial infrastructure designed for a continuously operating digital economy.
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