DBS Group believes the transition toward a tokenised financial ecosystem is no longer speculative but inevitable. What stands in the way, however, is not technology—it is regulation.

Rachel Chew, DBS's Group COO and Head of Digital Currencies for Global Transaction Services, noted that client demand has shifted decisively over the past decade. What began as a niche crypto experiment is now being driven by large institutions, corporates and high-net-worth investors. As clearer regulatory frameworks emerge, these clients increasingly view digital assets as a strategic component of their portfolios.

Why Tokenisation Matters

Tokenisation enables assets—including money—to move and settle 24/7. It also expands investment access through fractionalisation and lays the foundation for real-time liquidity. DBS has been investing in this evolution since 2016 via MAS’s Project Ubin and has since joined multiple initiatives such as Project Bloom to test tokenised bank money and stablecoins.

In 2020, the bank launched its own digital exchange, offering cryptocurrency trading and post-trade services to institutional and accredited investors. Today, DBS’s capabilities span token issuance and listing, safeguarding, trading, settlement, and acting as a reserve bank for digital-asset platforms.

The bank is also part of major industry infrastructures including the Swift Digital Ledger—where DBS sits in the 10-bank core design group—and is testing token interoperability with JPMorgan, allowing clients to swap deposit tokens across the two institutions.

Fragmented Regulation Is the Core Obstacle

Despite progress, Chew warned that regulatory uncertainty is the largest impediment. Definitions of digital money remain inconsistent across jurisdictions, and most rules focus on redemption timelines rather than interoperability or cross-border usage. Tokenisation standards for key instruments such as stablecoins and CBDCs are also incomplete, although industry groups—such as a Hong Kong working group DBS joined—have begun issuing preliminary guidance.

This fragmentation risks slowing adoption, especially for institutions lacking the technological capability to manage tokenised assets. Chew also cautioned that privately-issued digital money could create public confusion about what constitutes “real” money.

The Path Forward

Chew expects the landscape to become “harder before it gets better,” but argues that the economic benefits—more efficient capital markets, reduced operational risk, and broader investor access—are too substantial to ignore. Institutional appetite is already here; the challenge now is collective action among regulators, banks, and market participants to accelerate the development of global standards.

Tokenised finance may be inevitable—but a unified rulebook will determine how quickly it becomes reality.

This article is based on publicly available information and does not constitute any investment, legal, or regulatory advice.

Actual actions should be based on the latest regulations of the relevant jurisdiction and professional advice should be sought.