OCBC Launches Tokenized Bonds to Corporate Investors in Singapore
Oversea-Chinese Banking Corporation, better known as OCBC, has marked a milestone in blockchain innovation with the launch of tokenized bonds for accredited corporate investors. This makes OCBC the first bank in Singapore to offer such a facility and a giant leap toward digitizing financial services.
Bonds More Accessible and Flexible
The tokenized bonds are issued in denominations of as low as S$1,000, approximately 730 USD, thus allowing investors to have more flexibility and diversification. In contrast, most conventional corporate bonds usually have minimum lot sizes of S$250,000. Allowing for fractional ownership, the platform decreases concentration risks and opens up access to high-quality investment opportunities.
Further, the bonds settle on the same business day, reducing considerably from the five-day settlement period to thereby enhance liquidity and efficiency in bond trading.
Leverage Blockchain Technology
First conceptualized for conditional payment solutions in the construction industry involving the Land Transport Authority, OCBC’s tokenized bonds were based on blockchain infrastructure developed by the bank in 2022. Today, the platform offers a solution that will enable the easy issuance and management of such tokenized financial instruments.
The bonds also feature customizable characteristics, such as tenor and yield preference, to allow clients to tailor investments to meet specific financial goals.
Expansion into Tokenized Assets in the Future
The bank plans further tokenization for structured products and funds within a larger framework designed to smooth the life cycle management of different tokenized assets, further improving variety for investment products offered to its clients.
Singapore as a Blockchain Hub
The financial industry in Singapore remains on track to understand Blockchain more, and the leading one coming forward is OCBC. It issued its first tokenized bond for a mid-sized manufacturing client in November 2024 to enable the company to move on from fixed deposits, allowing for diversification of its portfolio amidst rising interest rates.
The country’s progressive regulatory framework concerning digital assets has also seen large global players make a beeline for the country. Last year, Singapore gave out 13 crypto licenses in 2024, more than double the total the previous year. Among some of the more well-known licensees were firms such as OKX, Upbit, and Anchorage.
Stricter regulations in Hong Kong have translated to slower adoption there, sending many firms to seek licensing in Singapore, which bolsters the country’s status as a blockchain hub.
OCBC’s tokenized bonds are critical steps in reforming the landscape in Singapore in more innovative solutions that bridge investments made in conventional investments and digital transformation.
