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Asian banking giant DBS launches blockchain-based bonds

Source: https://bit.ly/3yXyiJS

Asian banking giant DBS, which is one of the largest banks in Asia, announced on Monday that the bank has issued a six-month blockchain bond.

The new blockchain-based bond is called the “DBS Digital Bond” which carries a coupon of 0.60% per annum.

According to the official announcement , the bank plans to expand the offering of its products on its “DBS Digital Exchange” trading platform.

DBS has priced its latest S$15 million ($11.3 million) blockchain bond as part of its first security token offering (STO).

In December 2020, DBS Bank announced the launch of its own cryptocurrency trading platform.

The platform has seen steady growth since its launch due to the increased demand for cryptocurrencies in Asia.

Commenting on the latest announcement, Mr. Angkok Siet Moi, Head of Capital Markets Group at DBS Bank, said:

Our first inclusion of STOs on the DBS trading platform is a significant milestone, highlighting the strength of our cryptocurrency ecosystem that will facilitate the creation of new operations.

It provides value-releasing methods to exporters and investors.

Offerings like this enhance our ability to provide integrated solutions across the digital asset value chain, from deal creation to tokenization, listing, trading and custody, which in turn opens the door for more STOs on DDEx.

DBS stated that the bank followed the legal framework when issuing the digital bonds.

Singapore-based financial services provider DBS is anticipating a jump in the popularity of crypto and blockchain-based financial products.

DBS Blockchain Strategy:

In April 2021, DBS announced a partnership with JPMorgan and Temasek to launch a new cross-border payments platform based on blockchain technology.

The financial services provider has accelerated its blockchain strategy with the latest digital bond issuance.

To encourage wider investor participation, the digital bonds will be traded in bundles of up to S$10,000.

This is a much smaller denomination compared to traditional wholesale bonds, which usually require investment and trading amounts in multiples of S$250,000.

The announcement of the trading platform “DDEx” stated the following:

With the listing of Digital Bonds on DDEx, the securities are now available for secondary trading between institutions and accredited investors who are either suitable members or end customers of the DDEx trading platform.

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