Crypto-friendly DBS Bank, Singapore's largest bank by assets, announced it will launch the first retail tokenized physical gold product in Singapore through its digibank app in the second half of 2026. According to Reuters, this makes DBS the first major regulated bank globally to bring tokenized gold to retail customers, marking a significant milestone in the mainstream adoption of real-world asset tokenization. The product, called DBS Physical Gold Tokens, will allow retail customers to buy, hold, and trade tokenized physical gold on a single platform, with each token backed by 1 gram of physical gold held by DBS in a dedicated vault in Singapore.
The bank will tokenize, issue, distribute and manage the physical gold tokens entirely in-house, backed by trusted bank-grade infrastructure. Each token is backed by 1 gram of physical gold held by DBS in a dedicated vault in Singapore, as reported by Reuters. Holders can redeem tokens for the underlying bullion, and the bank is exploring a listing of the token on DBS Digital Exchange (DDEx), which is tailored for accredited investors and institutions. This reserve-and-claim model mirrors what stablecoin and card issuers already operate, with a real asset sitting in custody while a digital token represents a fractional claim on it.
The move builds on a growing trend towards blockchain-based versions of real world assets (RWAs). According to DBS, the size of physical gold holdings in the portfolios of wealthy clients has more than doubled over the past three years. As reported by Reuters, this represents the demand signal that DBS is responding to, with gold trading near record highs as investors seek ballast. The one-gram entry point lowers the barrier well below a standard bullion bar or full ounce, making tokenization practical for retail customers through fractionalization.
The tokenized gold launch represents the latest addition to *DBS'*s growing digital asset portfolio. In 2025, DBS tokenized structured notes on Ethereum and later partnered with Franklin Templeton and Ripple to bring tokenized money market fund products and stablecoin services to accredited and institutional investors through DDEx. The initiative included the listing of Franklin Templeton's sgBENJI token, which represents units of a tokenized U.S. dollar money market fund, alongside Ripple's RLUSD stablecoin. Additional plans include allowing clients to use tokenized fund units as collateral for financing arrangements, including repo transactions and lending structures where DBS would act as custodian.
James Tan, the head of DBS's investment product and advisory unit, noted that while retail investors have been able to buy gold funds, access to physical gold has been largely available to only institutional and accredited investors. As reported by Reuters, DBS has offered physical gold investments to wealth clients since 2013, and is now leveraging tokenization to broaden access, enabling more retail customers to invest in gold in a safe and meaningful way. The launch fits Singapore's broader pattern where the central bank has run tokenization pilots under Project Guardian and pushed regulated institutions toward on-chain settlement.
