DBSÂ is expanding its tokenised finance business after handling about S$10 billion in tokenised payments over two years.
Investment in the area could match or exceed what the bank spends on conventional payment and custody systems within two to three years, according to The Business Times.
DBS has not disclosed the current split and plans to increase funding as adoption grows.
Lim Soon Chong, Group Head of Global Transaction Services at DBS, expects the bank to scale its commitment in line with the pace of adoption.
Digital assets under custody rose by between 50% and 70% in 2025.
The number of accredited investors accessing digital assets or related products through the bank recorded double-digit growth.
Revenue tripled from about S$30 million in 2024.
DBS expects it to decline this year as lower cryptocurrency prices weigh on the business despite continued client activity.
The bank sees nearer-term opportunities in providing access to digital and tokenised assets alongside custody services.
Payments could take longer to scale because they require common standards, regulatory alignment and compatible systems.
DBS Invests in Infrastructure and Talent
DBS entered the sector around 2020 but proceeded cautiously while participation remained limited.
Growing involvement from banks, regulators and institutional investors has since encouraged further investment.
Its spending includes security, customer applications and connections with existing payment networks.
DBS is also hiring specialists and retraining employees.
Between 40 and 60 staff engage with digital assets daily, while hundreds more are involved through areas such as risk, compliance and finance.
Featured image: Edited by Fintech News Singapore, based on image by Who is Danny via Magnific
