OCBC introduces tokenized bonds targeted at corporate investors in Singapore.

The Oversea-Chinese Banking Corporation (OCBC) has introduced tokenized bonds for corporate accredited investors in Singapore, becoming the pioneer bank to offer this service. According to a press release, these bonds, denominated in S$1,000 (US$730), provide increased flexibility and diversification through OCBC's tokenization platform. Leveraging their 2022 blockchain infrastructure, OCBC expanded its application of this technology with a second commercial use case. The platform was previously utilized for a conditional payment solution in collaboration with the Land Transport Authority. These tokenized bonds are exclusively accessible to corporate accredited investors with net assets exceeding S$10 million. By enabling fractional ownership and smaller denomination sizes, OCBC reduces concentration risks associated with traditional corporate bonds, which typically have minimum transaction sizes of S$250,000. Customizable to clients' specific tenor and yield preferences, the bonds offer flexible investment options. Furthermore, these transactions settle on the same business day, significantly reducing the typical five-day bond settlement period. OCBC plans to extend its tokenization services to structured products and funds, enhancing their asset offerings and streamlining lifecycle management for various tokenized assets. In November 2024, OCBC successfully completed its first tokenized bond issuance for a mid-sized manufacturing client in Singapore, enabling the client to diversify their portfolio in response to changing interest rate conditions. Singapore's regulatory environment for digital assets has also progressed, with 13 crypto licenses approved in 2024, more than doubling the previous year's figure. Major firms like OKX, Upbit, and Anchorage were among the notable approvals, while Hong Kong issued five licenses this year, reaching a total of seven. Stringent regulations in Hong Kong, including restrictions on token listings and custody practices, have prompted some firms to seek licenses in Singapore.