DBS is set to offer tokenised physical gold to customers, enabling them to digitally access, hold, and trade tokenised the metal through a single platform The bank describes it as the first such offering in Singapore.
For retail customers, DBS Physical Gold Tokens will be available The bank is also exploring plans to list the token on DBS Digital Exchange (DDEx), tailored for accredited investors and institutional partners, with more details to be announced in due course
DBS will tokenise, issue, distribute and manage the physical gold tokens entirely in-house, backed by bank-grade infrastructure. By applying blockchain technology to physical gold and making fractionalised ownership possible, investing in this asset class can be more “cost-effective” and accessible to a wider pool of investors, said the Singapore-based lender. Customers can trade on a 24/7 basis, with atomic settlement enabling customers to perform near-instant transactions.
Fractional ownership will allow customers to purchase, trade and hold smaller amounts, or fractions, of physical gold in the form of tokens, and they will have the option to redeem their tokens for physical gold. Each token is backed by one gram (S$200 or $155.32) of physical gold held by DBS in a dedicated vault in Singapore. This offering further strengthens the bank’s existing suite of gold investment solutions, which range from funds to physical bullion.