OCBC Bank has introduced bespoke tokenised bonds, reportedly becoming the first bank in Singapore to offer such an option to corporate accredited investors (corporate AIs).
Corporate AIs are corporations with net assets exceeding S$10 million.
According to OCBC, the tokenised bonds are available in S$1,000 denominations, enabling clients to diversify their portfolios more easily.
The tokenised bonds, which reference investment-grade assets, are tailored to clients’ desired tenors and yields.
Once structured, they are minted on OCBC’s proprietary asset tokenisation platform and transferred to clients’ digital wallets.
This marks the second commercial application of OCBC’s blockchain infrastructure, developed in 2022.
Its first use case was a partnership with the Land Transport Authority (LTA) in 2024 to pilot a blockchain-based conditional payment solution for construction projects.
The launch aligns with Singapore’s push to commercialise and scale the use of tokenised assets.
Corporate bonds typically require a minimum transaction size of S$250,000, which can lead to concentration risks for investors.
By enabling fractional ownership through S$1,000 denominations, tokenisation lowers the barriers to entry and allows clients to build more diversified portfolios.
Clients can also liquidate their investments in smaller denominations to meet cash flow requirements.
In November 2024, OCBC completed its first tokenised bond transaction for a mid-sized manufacturing client in Singapore.
The bond, with a tenor of less than a year, was settled within one business day—significantly faster than the traditional five-day settlement process.
The client, seeking to diversify its portfolio away from fixed deposits, leveraged the tokenised bond to meet its investment objectives.
OCBC plans to gradually expand its asset tokenisation capabilities to include structured products and funds, aligning with evolving client needs and exploring the potential of blockchain-based solutions.
Kenneth Lai, Head of Global Markets at OCBC, said,
“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. Leveraging our asset tokenisation capabilities, we will progressively expand our offerings to include other types of tokenised assets.”
Featured image credit: Edited from Freepik
