OCBC Brings Custom Tokenised Bonds To Corporate Investors In Singapore
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OCBC Bank has become the first bank in Singapore to introduce bespoke tokenised bonds. The bank said these bonds are for corporate AIs, investors with at least S$10 million in net assets. According to the update, the bonds offer businesses flexible choices to suit their financial plans.
The tokenised bonds are created on OCBC’s asset tokenisation platform and stored in a digital wallet controlled by the bank. OCBC said this is an important step for Singapore’s financial sector, using blockchain technology to fix problems like high entry costs and fewer investment choices.
OCBC’s Tokenised Bonds Reduce Investment Minimums To Just S$1,000
Traditional corporate bonds require a minimum investment of S$250,000, which limits opportunities for diversification. OCBC said its tokenisation lowers the minimum investment to just S$1,000. This helps businesses build more varied portfolios. The firm also said the tokenisation lets companies manage their money better by selling smaller investments when needed.
Kenneth Lai, Head of Global Markets at OCBC, announced that the bank is proud of this milestone. He said the firm has seen great progress in recognizing the potential of tokenised assets. This innovation offers flexible and liquid investment options, bringing real advantages to our customers. He revealed that the bank plans to expand its tokenisation services to include other asset types in the future.
Last year, OCBC completed its first tokenised bond transaction for a mid-sized manufacturing firm. The bank said the deal was completed in one business day, showing how fast tokenisation can be. Usually, bond deals take up to five days, but OCBC’s blockchain system allows quicker settlements.
OCBC Explores Broader Tokenisation Opportunities
OCBC has used blockchain-powered solutions before, including last year’s partnership with Singapore’s Land Transport Authority to test blockchain payments in construction projects. The company said the tokenised bond initiative is the second commercial use of its blockchain system.
As interest rates go down, businesses that used to rely on fixed deposits may now see tokenised bonds as a good option. OCBC said these bonds let investors settle deals faster, pay lower entry costs, and have more flexible choices. This could help companies who want to try different kinds of investments.
Experts believe this idea could change how businesses in Singapore plan their money. OCBC’s focus on flexible and easy-to-use options may inspire other banks to use blockchain technology.
According to the update, OCBC’s step into tokenised bonds is an important moment for the financial world. By offering these bonds, the bank said it wants to help businesses get ready for the future and is encouraging more people to try blockchain solutions.
