Singapore’s OCBC Financial institution has launched a blockchain-based answer enabling company purchasers to spend money on fractionalized tokenized bonds, marking a shift in company treasury administration.
The financial institution’s accredited traders, outlined as entities with over S$10 million ($7.3 million) in belongings, can now buy bond items ranging from S$1,000 — a major discount from the normal minimal of S$250,000, based on Ledger Insights.
The brand new answer additionally permits traders to customise bond length and coupon charges. These tokenized bonds reference present investment-grade belongings, offering company purchasers with extra tailor-made and liquid funding choices.
As an illustration, a mid-sized development agency not too long ago utilized the service to diversify its treasury holdings past mounted deposits, Ledger Insights reported.
Settlement occasions have additionally improved, with transactions now taking simply in the future 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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International banks and tokenization
International banks are starting to discover tokenization for monetary transactions. Final fall, the Reserve Financial institution of Australia launched a session on Venture Acacia, a three-year initiative exploring wholesale central financial institution digital foreign money and tokenized asset markets.
The challenge 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 expertise with its first digital bond.
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