OCBC Rolls Out Tokenised Bonds Enabling Customised Yield, Tenor

It is first bank in Singapore to offer option - targeted at companies with net assets worth over $10m

- Sheila Chiang

OCBC Bank has launched tokenised bonds that are structured based on the client's desired tenor and yield, becoming the first bank in Singapore to offer the option as the Republic pushes for asset tokenisation in financial services.

These tokenised bonds are targeted at corporate accredited investors, or companies that have net assets worth over $10 million.

Tokenisation allows fractional ownership where the corporate accredited investor can subscribe to tokens at $1,000 denominations, unlike a corporate bond which usually requires the investor to subscribe to the full amount of the bond, typically at a high minimum of $250,000.

Asset tokenisation in financial services refers to the process of digitally representing real and physical assets such as bonds and equities on the blockchain.

Investors can then avoid concentration risk and build more diversified portfolios, OCBC said on Jan 6.