DBS Bank Advances Stablecoin Innovation with New Partnerships and Tokenization Efforts
Singapore’s largest bank, DBS, is making significant strides in the digital asset space, particularly with stablecoins and blockchain-based financial instruments. The bank has been actively expanding its blockchain capabilities, including a notable partnership with Paxos to launch a US dollar-pegged stablecoin, USDG, and exploring tokenized financial products to enhance trading accessibility [2].
DBS and Paxos Launch USDG Stablecoin
In a groundbreaking move, DBS partnered with Paxos [1], a leading blockchain infrastructure provider, to launch USDG, described as a "global dollar" stablecoin, on November 1, 2024. Issued by Paxos Digital Singapore, USDG is designed to meet the needs of regulated institutions, emphasizing compliance and operational excellence. DBS serves as the custodian for the stablecoin’s reserves, which include US dollar deposits, short-dated Treasuries, and other cash equivalents like reverse repurchase agreements. This partnership leverages DBS’s robust infrastructure to ensure the stablecoin maintains a 1:1 peg with the US dollar, offering a trusted solution for enterprise adoption.
The USDG stablecoin operates on the Ethereum blockchain, ensuring compatibility with a widely used platform. Paxos highlights that USDG addresses the growing enterprise demand for stablecoins that combine regulatory compliance with economic incentives, positioning it as a catalyst for broader stablecoin innovation.
DBS Bank: Size, Revenues, and Scope of Operations
DBS Group Holdings Ltd., headquartered in Singapore, is the largest bank in Singapore and Southeast Asia by assets, with total assets amounting to approximately S$820 billion (US$644 billion) in the financial year 2024 [3]. DBS operates across 19 markets, with a significant presence in Greater China, Southeast Asia, and South Asia, serving over 18 million customers
Tokenizing Structured Notes for Broader Access
In addition to its stablecoin endeavors, DBS has expanded its blockchain capabilities by tokenizing structured notes linked to cryptocurrencies, announced on August 21, 2025. These complex financial instruments, traditionally tied to underlying assets or indices and requiring minimum investments of USD 100,000, are now being made tradable in fractional form on external platforms such as ADDX, DigiFT, and HydraX. This initiative broadens access to these instruments beyond DBS’s existing client base, although participation remains limited to accredited investors.
The tokenization of structured notes addresses the challenges of illiquidity and high entry barriers associated with these products. By leveraging blockchain technology, DBS enables fractional ownership, making these instruments more accessible and tradable, thus appealing to a wider pool of sophisticated investors. This move builds on the bank’s pioneering efforts in digital assets, which began with the launch of the DBS Digital Exchange (DDEx) in 2020, one of the first platforms globally to offer spot cryptocurrency trading for high-net-worth individuals and professional investors
Exploring Stablecoin Listings on DDEx
DBS’s commitment to digital assets extends to its exploration of stablecoin listings on the DBS Digital Exchange. In July 2024, the bank’s CEO of DDEx, Lim Wee Kian, indicated that the exchange is considering listing stablecoins, including potentially USDG, to meet the growing demand from professional investors. This follows a significant increase in digital asset trading volumes, which tripled in the first five months of 2024, driven by a 62% surge in Bitcoin valuations. The exchange aims to provide a secure platform for managing digital and traditional portfolios side by side, reinforcing DBS’s position as a leader in the digital asset ecosystem.
A Broader Vision for Blockchain and Stablecoins
DBS’s initiatives align with its broader vision of integrating blockchain technology into traditional banking services. The bank has also introduced DBS Token Services, a suite of blockchain-powered solutions for institutional clients, including Treasury Tokens for 24/7 cross-border payments and Programmable Rewards for smart contract-based vouchers. These efforts, supported by DBS’s permissioned Ethereum-compatible blockchain, demonstrate the bank’s commitment to enhancing liquidity management and operational efficiency through tokenization.
Moreover, DBS’s participation in the Monetary Authority of Singapore’s (MAS) Project Orchid and Project Guardian underscores its role in shaping the future of digital currencies. The bank’s collaboration with MAS on Purpose Bound Money (PBM) and other blockchain initiatives highlights its proactive approach to integrating stablecoins and tokenized assets into Singapore’s financial ecosystem.
Conclusion
DBS Bank is at the forefront of the stablecoin and blockchain revolution, leveraging partnerships like Paxos and innovative tokenization strategies to redefine financial services. By launching USDG, tokenizing structured notes, and exploring stablecoin listings on DDEx, DBS is not only enhancing accessibility for accredited investors but also setting a new standard for regulatory-compliant digital asset solutions. As the bank continues to integrate blockchain technology, it is poised to drive significant advancements in the global digital economy.