OCBC is turning to blockchain with a US$1 billion digital US commercial paper (USCP) programme, giving the bank the ability to raise short-term US dollar funding in minutes.
The move reflects efforts to strengthen liquidity resilience as global markets face growing geopolitical and macroeconomic uncertainty.
The programme complements OCBC’s existing US$25 billion conventional USCP programme, established in August 2011.
Issuance, settlement, record-keeping and servicing are conducted on-chain, making OCBC the first USCP issuer globally to use blockchain across the securities’ full lifecycle.
Near-instant settlement is enabled by having tokenised securities and funds on-chain.
The setup provides all parties with the same real-time, auditable records and reduces reliance on traditional infrastructure and intermediaries.
J.P. Morgan’s Digital Debt Service application, built on its multi-asset tokenisation platform, Kinexys Digital Assets, facilitates the programme. J.P. Morgan is also acting as sole dealer.
The first USCP tokenised issuance under the programme was completed on 20 August 2025.
OCBC issued six-month notes to an accredited institutional investor and received the funds within minutes of the transaction. Proceeds will be used for general funding purposes.
The digital USCP programme has short-term credit ratings of P-1 from Moody’s and F1+ from Fitch, the highest for such instruments.
OCBC said the programme provides an alternative channel to tap the US$1.4 trillion USCP market to quickly raise USD.
The launch follows OCBC’s adoption in 2024 of J.P. Morgan’s Digital Financing application for reverse repo and repo transactions, part of broader efforts to strengthen liquidity management.
Kenneth Lai, OCBC’s Head of Global Markets, said,
“Singapore’s blockchain ecosystem is advancing fast, and asset tokenisation is gaining real momentum. Our focus is now firmly on commercialisation. We have already tapped blockchain for intraday repo and reverse repo transactions—capabilities added last year—and are now expanding into the USCP market to strengthen liquidity and resilience.
OCBC is no stranger to this space, but our new digital USCP programme will deepen investor engagement and sharpen our global capital markets profile. The speed and transparency of this solution have only strengthened our conviction in blockchain’s transformative power for capital markets.”
Scott Lucas, Head of Markets Digital Assets at J.P. Morgan, said,
“J.P Morgan’s Digital Debt Service provides an additional way for issuers and investors to participate in the USCP market and OCBC’s issuance has demonstrated this in practice.
Our partnership with OCBC in support of developing both their access to the US market and their digital agenda is aligned to our commitment of offering innovative liquidity solutions.”
Featured image: Edited by Fintech News Singapore, based on image by poppet07 via Freepik
