Both Cisco router and Cisco switch can be configured as DNS servers.
However, if you use Cisco switch as a DNS server, it doesn't support DDNS updates.
You will get the following messages on Cisco switch when you run "debug ip ddns update":
DDNS: Prerequisite: x.x.x.x.in-addr.arpa. not in use
DDNS: Update: add x.x.x.x.in-addr.arpa. IN PTR client1.domain.local
DDNS: Dynamic DNS Update 1 (PTR) for host client1.domain.local returned 4 (NOTIMP)