OCBC Financial institution has launched bespoke tokenised bonds, reportedly turning into the primary financial institution in Singapore to supply such an choice to company accredited buyers (company AIs).
Company AIs are firms with web belongings exceeding S$10 million.
In line with OCBC, the tokenised bonds can be found in S$1,000 denominations, enabling purchasers to diversify their portfolios extra simply.
The tokenised bonds, which reference investment-grade belongings, are tailor-made to purchasers’ desired tenors and yields.
As soon as structured, they’re minted on OCBC’s proprietary asset tokenisation platform and transferred to purchasers’ digital wallets.
This marks the second industrial software of OCBC’s blockchain infrastructure, developed in 2022.
Its first use case was a partnership with the Land Transport Authority (LTA) in 2024 to pilot a blockchain-based conditional cost answer for building initiatives.
The launch aligns with Singapore’s push to commercialise and scale using tokenised belongings.
Company bonds sometimes require a minimal transaction dimension of S$250,000, which may result in focus dangers for buyers.
By enabling fractional possession by way of S$1,000 denominations, tokenisation lowers the obstacles to entry and permits purchasers to construct extra diversified portfolios.
Shoppers can even liquidate their investments in smaller denominations to fulfill money circulate necessities.
In November 2024, OCBC accomplished its first tokenised bond transaction for a mid-sized manufacturing consumer in Singapore.
The bond, with a tenor of lower than a 12 months, was settled inside one enterprise day—considerably sooner than the normal five-day settlement course of.
The consumer, looking for to diversify its portfolio away from fastened deposits, leveraged the tokenised bond to fulfill its funding goals.
OCBC plans to regularly develop its asset tokenisation capabilities to incorporate structured merchandise and funds, aligning with evolving consumer wants and exploring the potential of blockchain-based options.
Kenneth Lai, Head of World Markets at OCBC, stated,
“As an trade, we have now made vital strides in understanding and recognising the huge potential of tokenised belongings. As we shift our focus in the direction of commercialisation, we’re proud to have developed bespoke tokenised bonds by way of our asset tokenisation platform.
This innovation offers versatile and liquid funding alternate options, bringing tangible advantages to our prospects. Leveraging our asset tokenisation capabilities, we are going to progressively develop our choices to incorporate different sorts of tokenised belongings.”
Featured picture credit score: Edited from Freepik
