DBS Bank of Singapore Introduces Digital Bond Security Token

Sahaj  |  Jun 1, 2021

It has been recently revealed that the institutional investors who have signed up to the DBS Digital Exchange will be allowed to access the secondary markets for the Digital Bond of DBS. With the issuance of a digital bond, the multinational banking corporation based in Singapore, DBS Bank has introduced its first Security Token Offering or STO.

DBS Bank Singapore Launches Digital Bond Security Token

Priced at $11.35 million, the DBS Digital Bond comes with a tenure of six months and a coupon rate of 0.60% annually. Talking about the offering, it was carried out through a private placement that was hosted by DDEx, the DBS Digital Exchange, marking the first STO of DDEx.

The bond is all set to be traded in board lots of 10K Singapore dollars that are equivalent to $7,560 in order to motivate the engagement of the investors. 

This should be noted as it is a dramatic decline as compared to the 250,000 Singapore dollar board lots that the traditional wholesale bonds are being traded in.

The Singapore-based bank hopes its offering will be paving the way for other issuers to introduce the security token offerings via the DDEx platform.

Eng-Kwok Seat Moey’s Emphasis on Security Tokens

The Group Head of the Capital Markets at DBS, Eng-Kwok Seat Moey laid an emphasis that the security tokens offer an effective and motivating way of raising money in the Aisa-Pacific region.

He stated:

“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. We expect asset tokenization to increasingly become more mainstream as more of our clients start to embrace security token issuance as part of their capital fundraising.”

Moey estimated daily volume on the DDEx has surged by over 900% since the time of its launch in the month of December 2020.

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