One of the largest banks in Singapore — DBS — has announced plans for the tokenization of structured bonds based on the Ethereum blockchain. In the initial phase, they will be available on the ADDX, DigiFT, and HydraX platforms.

It should be noted that structured bonds are a financial product that combines features of a traditional bond and a derivative. The option component in such securities provides their linkage to a specific asset, in this case — cryptocurrency.

As noted by DBS, the minimum investment threshold for structured bonds is often $100,000. Through tokenization, the bank will be able to divide them into fragments with a nominal value of $1,000, ensuring wider accessibility and flexibility during trading.

The partnership with the ADDX, DigiFT, and HydraX platforms, for their part, will enable reaching those institutional and accredited investors who are not DBS clients during the offering of this product.