DBS Bank has started offering tokenized physical gold directly to retail customers in Singapore, letting everyday investors own fractional shares of bullion stored by the bank. The move gives individuals a new way to invest in gold without needing to buy entire bars or manage physical storage.
What tokenized gold means
Each digital token issued by DBS represents a specific weight of physical gold held in the bank's vaults. Customers can buy and sell these tokens in small increments, making gold ownership more accessible than traditional bullion purchases. The tokens are backed one-to-one by real gold, and DBS handles the custody and auditing of the metal.
Retail access to a reserved market
Tokenized gold products have typically been limited to institutional or high-net-worth clients. DBS is now opening that door to its retail base in Singapore. Customers can trade the tokens through the bank's existing digital channels, without the logistical hurdles of storing or insuring gold themselves.
How it works in practice
Investors buy tokens at the prevailing gold price, and DBS stores the equivalent amount of physical metal. The tokens can be resold, and DBS’s system tracks ownership digitally. The bank says the gold is available for redemption in physical form, though most retail users are likely to hold the tokens for trading or portfolio diversification.
DBS’s offering enters a market where gold has long been a popular safe-haven asset. By tokenizing it, the bank gives retail customers a liquid, transparent way to hold gold without the typical premiums or storage fees of physical coins or bars.
The product is live now for DBS retail customers in Singapore.
