DBS Bank is making structured notes more accessible by putting them on the Ethereum blockchain. This will allow the bank to sell these digital notes on different trading platforms, including ADDX, DigiFT, and HydraX.
Initially, DBS will focus on tokenizing notes linked to cryptocurrencies. These notes offer investors a way to gain exposure to the crypto market without directly owning the assets. They provide a cash payout if crypto prices increase, while also being structured to limit losses if prices fall.
Traditionally, structured notes are complex and expensive, often requiring a minimum investment of $100,000. By tokenizing them, DBS is creating smaller, more affordable digital tokens, each representing a $1,000 share. This makes it easier for investors to buy and sell these notes with more flexibility.
In the future, DBS plans to expand this initiative to include other types of structured notes, such as those linked to equities and credit. This move aims to give institutional and accredited investors more flexible ways to manage their portfolios.
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