OCBC Launches Tokenized Bonds for Corporate Investors in Singapore

Oversea-Chinese Banking Corporation (OCBC) has launched tokenized bonds for corporate accredited investors, becoming the first bank in Singapore to introduce this service.

A press release from OCBC stated that these bonds, issued in S$1,000 (730 USD) denominations through the bank’s tokenization platform, provide enhanced portfolio flexibility and diversification.

Expanding Blockchain Applications at OCBC

Building on its blockchain infrastructure developed in 2022, OCBC expanded its use of this technology through a second commercial application.

The platform was previously used in a conditional payment solution for construction projects in collaboration with Singapore’s Land Transport Authority.

These tokenized bonds are exclusively available to corporate accredited investors, which include corporations holding net assets of more than S$10 million.

By allowing fractional ownership with S$1,000 denominations, the initiative reduces concentration risks tied to traditional corporate bonds, which typically require a minimum transaction size of S$250,000.

Reaching greater heights together. pic.twitter.com/isuzDXAJ5q

— OCBC (@OCBCBank) July 2, 2024

The bonds are customized to match clients’ specific tenors and yield preferences, offering flexible investment options.

Additionally, these transactions settle on the same business day, substantially shortening the conventional five-day settlement period for bonds.

OCBC has outlined plans to extend its tokenization capabilities to include structured products and funds, broadening its asset offerings.

This approach seeks to streamline lifecycle management for a range of tokenized assets.

Singapore Expands Blockchain Use in Financial Products

In November 2024, OCBC completed its first tokenized bond issuance for a mid-sized manufacturing client in Singapore.

This transaction allowed the client to pivot from fixed deposits and diversify its portfolio in response to shifting interest rate conditions.

While OCBC advances tokenized bonds, Singapore’s broader regulatory framework for digital assets has also evolved.

In 2024, the country approved 13 crypto licenses, more than doubling the previous year’s total. Among the notable approvals were major firms such as OKX, Upbit, and Anchorage.

Singapore has been on the lead in approving crypto licenses in 2024, but Hong Kong lags behind, new report reveals.#SingaporeCrypto #HongKongCrypto #CryptoLicensehttps://t.co/kNGZz4L3Wf

— Cryptonews.com (@cryptonews) December 24, 2024

In comparison, Hong Kong issued licenses to five platforms this year, bringing its total to seven.

Stricter regulations in Hong Kong, including limitations on token listings and custody practices, have influenced firms to seek licenses in Singapore.