Asia’s Banking Giant DBS Launches Blockchain Bonds

DBS, one of the largest banks in Asia, announced yesterday that the bank has issued Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term bonds with a six-month tenor. Dubbed ‘DBS Digital Bond’, the blockchain-based bonds have a coupon rate of 0.60% per annum.

According to an official announcement, the bank is planning to expand its product offering on the DBS Digital Exchange (DDEx). DBS has priced the latest SGD 15 million ($11.3 million) blockchain bond as part of DDEx’s first Security Token Offering (STO).

In December 2020, DBS announced the launch of its cryptocurrency exchange. The digital exchange has seen consistent growth since its launch due to a surge in demand for digital currencies in Asia.

Commenting on the latest announcement, Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS, said: “Our maiden STO listing on the DBS Digital Exchange is a significant milestone, as it highlights the strength of our digital asset ecosystem in facilitating new ways of unlocking value for issuers and investors. This cements our ability to provide integrated solutions across the digital asset value chain, from deal origination to tokenization, listing, trading and custody, which in turn opens the door for more STOs on DDEx.”

DBS mentioned that the bank has followed the legal framework in the issuance of digital bonds. The Singapore-based financial services provider is expecting a jump in the popularity of tokenization and blockchain-based financial products.

Blockchain Strategy of DBS

In April 2021, DBS announced a partnership with JPMorgan and Temasek to launch a new cross-border Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term platform based on blockchain technology. The financial services provider has accelerated its blockchain strategy through the latest digital bond issuance.

“To encourage broader participation from investors, the digital bond will be traded in board lots of SGD 10,000. This is a significantly smaller denomination compared to traditional wholesale bonds, which typically require investment and trading amounts in multiples of SGD 250,000. With the listing of the Digital Bonds on DDEx, the securities are now available for secondary trading among institutional and accredited investors who are either members or applicable end clients of members of DDEx,” DBS mentioned in the announcement.