DBS Bank will offer tokenized physical gold to its retail customers amid growing demand for the precious metal, the bank said on Thursday.

DBS, which is Singapore’s largest bank by assets, said that its DBS Physical Gold Tokens will be available through its digibank app in the second half of 2026.

The news comes as Singapore seeks to establish itself as a gold trading hub despite a sell-off this year of over 25% in the price of gold from $5600 per ounce to roughly $4000 per ounce.

James Tan, group head, investment product and advisory at DBS, said: “Gold as an asset class has taken off in recent years, demonstrating its enduring value as a safe haven and a critical diversifier in uncertain times.”

“While our retail investors have been able to buy gold funds, access to physical gold has been largely available to only institutional and accredited investors.”

“DBS has offered physical gold investments to wealth clients since 2013, and we are now leveraging tokenisation to broaden access, enabling more retail customers to invest in gold in a safe and meaningful way.”

The new token will be backed by one gram of physical gold, worth roughly $135, and will be held by DBS in a dedicated vault in Singapore.  

DBS said it is also exploring plans to list the token on its own exchange for accredited investors and institutional partners.

A few weeks ago, China AMC launched a tokenized gold exchange-traded fund (ETF) on the Hong Kong Stock Exchange, as the city also pushes its ambitions to be a gold trading hub in the region.