DBS, Southeast Asia’s largest financial institution, has launched its first safety token providing (STO) on its cryptocurrency trade. The DBS Digital Bond is priced at 15 million Singapore {dollars}. “We anticipate asset tokenization to more and more develop into extra mainstream,” mentioned a DBS government.
DBS’ First Safety Token Providing
DBS introduced Monday its first safety token providing (STO) on the DBS Digital Change (Ddex). The DBS Digital Bond, priced at 15 million Singapore {dollars} (US$11.37 million), comes with a six-month tenor and coupon price of 0.60% each year. It’s supplied as a non-public placement and DBS is the only bookrunner for the transaction. The financial institution detailed:
This paves the way in which for different issuers and purchasers to faucet on Ddex’s capabilities to effectively entry capital markets for his or her funding wants and units the stage for extra STO issuances and listings on Ddex as asset tokenisation turns mainstream.
Clifford Lee, International Head of Mounted Revenue at DBS, mentioned that “this marks the primary of many steps within the journey to evolve the standard bond issuance right into a broader digital ecosystem the place extra inclusive issuer and investor participation may be quickly developed.”
Lee continued: “Whereas most bond tokenization workouts introduced in Asia so far are usually repackaged types of a traditional bond problem, the present transaction immediately combines present authorized and tax infrastructure necessities with a direct issuance on the digital trade in smaller lot sizes.” The manager added:
This bond token construction was solely made doable due to the progressive growth of Singapore’s authorized and tax infrastructure, which may facilitate extra STO issuances to broaden and deepen our capital markets.
Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS, commented: “Our maiden STO itemizing on the DBS Digital Change is a major milestone … This cements our capability to offer built-in options throughout the digital asset worth chain, from deal origination to tokenization, itemizing, buying and selling, and custody, which in flip opens the door for extra STOs on Ddex.” He emphasised:
We anticipate asset tokenisation to more and more develop into extra mainstream as extra of our purchasers begin to embrace safety token issuance as a part of their capital fund elevating train which we imagine will increase Singapore’s ambitions to be a digital asset hub in Asia.
The DBS Digital Change was launched in December final yr. It presents “trade companies between 4 fiat currencies (SGD, USD, HKD, JPY)” and 4 “cryptocurrencies, particularly bitcoin, ether, bitcoin money, and XRP,” its web site explains.
The financial institution disclosed in its first-quarter earnings name that its crypto trade “loved sturdy market traction since its launch.” Particularly, its “Every day buying and selling volumes have elevated 10-fold from the preliminary week of launch, and the trade presently serves over 120 members. DBS additionally holds over SGD 80 million in digital belongings in its custodial service,” the financial institution revealed. In Could, the financial institution launched a belief service for cryptocurrencies.
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