Singapore-based OCBC has become the city-state’s first bank to launch the sale of bespoke tokenized bonds.
OCBC has launched the sale of bespoke tokenized bonds to corporate accredited investors, according to a statement. Corporate accredited investors are corporations with net assets exceeding S$10 million ($7.3 million).
The bonds were created by the bank’s asset tokenization platform which streamlines the entire lifecycle from creation and minting to ownership transfers, custody and redemption. They were issued in denominations of S$1,000 and settled within the same business day of debiting the client’s bank account to the transfer of tokens from OCBC to the client’s wallet.
In contrast, traditional corporate bonds usually have a high minimum transaction size of S$250,000 and take five days for settlements.
First Commercial Use Case
This is the second commercial use case using OCBC’s blockchain infrastructure which was developed in 2022. The first use case was a partnership with Singapore’s Land Transport Authority to pilot a blockchain-based conditional payment solution for construction projects in 2024.
«As an industry, we have made significant strides in understanding and recognizing the vast potential of tokenized assets,» said Kenneth Lai, head of global markets, OCBC.
«As we shift our focus towards commercialization, we are proud to have developed bespoke tokenized bonds via our asset tokenization platform. This innovation provides flexible and liquid investment alternatives, bringing tangible benefits to our customers. Leveraging our asset tokenization capabilities, we will progressively expand our offerings to include other types of tokenized assets.»
