TL;DR:
- DBS Bank will launch a tokenized gold product backed by one gram of physical gold per token, custodied in its own vaults in Singapore.
- The physical gold holdings of DBS wealth management clients doubled during the last three years prior to the announcement.
- The underlying asset recorded an all-time high price of $5,600 per ounce in 2026 before correcting toward the $4,112 zone.
Singapore’s financial sector integrates traditional assets to strengthen its blockchain infrastructure. Recently, DBS Bank reported that during the second half of 2026 it will offer retail clients tokenized gold; in fact, it will allow the purchase, trading, and redemption of this metal through its app.
Each digital unit issued by the financial institution will be equivalent to one gram of physical gold deposited in its secure facilities. Information from the entity reveals that this fractionalization reduces the barrier to entry to an estimated value of 200 Singapore dollars (approximately $155 US dollars) per token.
The distributed infrastructure will facilitate immediate settlement of exchange operations. DBS specifications indicate that the system will be active uninterruptedly 24 hours a day. Unlike other digital derivatives in the financial market, users will retain the right to claim the asset in its physical form.
The centralized bank will assume direct control over the entire supply chain of the crypto asset. The entity detailed that it will handle vault storage, tokenization, global custody, issuance, and commercial distribution.
Expansion of the metals and digital assets market
The demand for precious metals has increased due to geopolitical tensions and global inflationary pressures. According to 2026 trade figures, gold reached a record price of $5,600 per ounce during the year, subsequently experiencing a correction close to 27% to settle around $4,112.
The portfolios of the bank’s institutional clients reflect this accumulation trend. Internal statistics reveal that the volume of physical gold under management in the wealth division doubled over the recent three-year period, which prompted the extension of the service to the retail sector.
James Tan, head of investment products and advisory group at DBS, noted that access to physical gold has historically been restricted to institutional firms and accredited buyers. The executive stated that the use of tokenization seeks to democratize access to the metal within a regulated environment.
The initiative is part of Singapore’s broader strategy to position itself as a central hub for commodities and crypto-asset trading. Previously, the banking firm carried out the tokenization of structured notes on the Ethereum network and integrated Franklin Templeton’s sgBENJI money market fund.
DBS is currently evaluating the listing of this new gold token on its institutional platform, DBS Digital Exchange. This technical step would allow direct interaction between retail capital flows and accredited investors on the digital exchange in the short term.
