OCBC has launched the sale of bespoke tokenised bonds issued in S$1,000 denominations to corporate clients that have net assets exceeding S$10 million.
The tokenised bonds, which reference investment grade bonds, are structured based on the client’s desired tenor and yield. They are then minted and transferred to the client’s wallet created on OCBC’s asset tokenisation platform.
This is the second commercial use case using OCBC’s blockchain infrastructure which was developed in 2022. The first commercial use case was a partnership with LTA to pilot a blockchain-based conditional payment solution for construction projects in 2024.
OCBC says the new platform will contribute to reducing concentration risk, by enabling fractional ownership, and help clients to build more diversified portfolios.
OCBC’s asset tokenisation capability - which streamlines the entire lifecycle from creation and minting to ownership transfers and custody, and redemption through token burning - will be progressively extended beyond fixed income assets to include structured products and funds.
Kenneth Lai, head of global markets at OCBC, says: “As an industry, we have made significant strides in understanding and recognising the vast potential of tokenised assets. As we shift our focus towards commercialisation, we are proud to have developed bespoke tokenised bonds via our asset tokenisation platform. This innovation provides flexible and liquid investment alternatives, bringing tangible benefits to our customers.”