Singapore’s OCBC bank launches fractional tokenized bonds for corporates
Singapore’s OCBC Financial institution has launched a blockchain-based answer enabling company shoppers to spend money on fractionalized tokenized bonds, marking a shift in company treasury administration.
The financial institution’s accredited buyers, outlined as entities with over S$10 million ($7.3 million) in belongings, can now buy bond models ranging from S$1,000 — a big discount from the standard minimal of S$250,000, in line with Ledger Insights.
The brand new answer additionally permits buyers to customise bond period and coupon charges. These tokenized bonds reference present investment-grade belongings, offering company shoppers with extra tailor-made and liquid funding choices.
For example, a mid-sized building agency just lately utilized the service to diversify its treasury holdings past fastened deposits, Ledger Insights reported.
Settlement occasions have additionally improved, with transactions now taking simply sooner or later in comparison with the everyday 5 days.
This initiative builds on OCBC’s earlier blockchain initiatives. In 2023, the financial institution partnered with ADDX for structured product issuances and launched a conditional cost answer utilizing blockchain. The system facilitated computerized disbursements for the Land Transport Authority, processing over S$22 million in funds by late 2024.
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World banks and tokenization
World banks are starting to discover tokenization for monetary transactions. Final fall, the Reserve Financial institution of Australia launched a session on Challenge Acacia, a three-year initiative exploring wholesale central financial institution digital foreign money and tokenized asset markets.
The venture sought public suggestions on the potential advantages of tokenizing belongings and utilizing CBDCs for settlement.
Additionally, in June of 2024, Germany’s state-owned financial institution, Kreditanstalt fuer Wiederaufbau, began utilizing blockchain know-how with its first digital bond.
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