OCBC has initiated the sale of customized tokenized bonds in S$1,000 denominations, targeting corporate clients with net assets exceeding S$10 million.
These tokenized bonds, linked to investment grade bonds, are tailored according to the client’s preferred tenor and yield. Once structured, they are minted and transferred to the client’s wallet on OCBC’s asset tokenization platform.
This marks the second commercial application of OCBC’s blockchain infrastructure, which was developed in 2022. The first use case involved a collaboration with LTA to pilot a blockchain-based conditional payment solution for construction projects in 2024.
According to OCBC, the new platform aims to reduce concentration risk by facilitating fractional ownership, thereby helping clients develop more diversified portfolios.
OCBC’s asset tokenization capability streamlines the entire lifecycle from creation and minting to ownership transfers, custody, and redemption through token burning. Future plans include extending this capability beyond fixed income assets to encompass structured products and funds.
Kenneth Lai, head of global markets at OCBC, stated, “As an industry, we have made significant strides in understanding and recognizing the vast potential of tokenized assets. As we shift our focus towards commercialization, we are proud to have developed bespoke tokenized bonds via our asset tokenization platform. This innovation provides flexible and liquid investment alternatives, bringing tangible benefits to our customers.”