Singapore's DBS Bank recently announced its initiative to tokenize structured notes on the Ethereum blockchain. This strategic move will enable investors to gain exposure to the cryptocurrency markets without the need to directly manage cryptocurrencies. The bank plans to collaborate with platforms such as ADDX, DigiFT, and HydraX for distribution. These structured notes offer a blend of debt securities and derivatives, linking their performance to cryptocurrencies while providing cash payouts when prices rise, along with mitigation against potential losses during downturns. DBS's Head of Foreign Exchange and Digital Assets stressed that asset tokenization represents a pivotal advancement in financial market infrastructure, catering to the increasing interest from institutional clients in digital assets. Other major financial institutions, including BlackRock, have also ventured into tokenization, indicating a growing trend towards integrating blockchain technology within traditional finance.

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