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 count on asset tokenization to more and more develop into extra mainstream,” stated a DBS govt.
DBS’ First Safety Token Providing
DBS introduced Monday its first safety token providing (STO) on the DBS Digital Trade (Ddex). The DBS Digital Bond, priced at 15 million Singapore {dollars} (US$11.37 million), comes with a six-month tenor and coupon fee of 0.60% every year. It’s provided as a personal placement and DBS is the only bookrunner for the transaction. The financial institution detailed:
This paves the way in which for different issuers and shoppers 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 Fastened Revenue at DBS, stated that “this marks the primary of many steps within the journey to evolve the normal bond issuance right into a broader digital ecosystem the place extra inclusive issuer and investor participation might be quickly developed.”
Lee continued: “Whereas most bond tokenization workouts introduced in Asia so far are typically repackaged types of a traditional bond challenge, the present transaction instantly combines present authorized and tax infrastructure necessities with a direct issuance on the digital trade in smaller lot sizes.” The chief 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 Trade is a big milestone … This cements our means to supply 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 count on asset tokenisation to more and more develop into extra mainstream as extra of our shoppers 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 Trade was launched in December final 12 months. It gives “trade companies between 4 fiat currencies (SGD, USD, HKD, JPY)” and 4 “cryptocurrencies, specifically 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 “Day by 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 property in its custodial service,” the financial institution revealed. In Might, the financial institution launched a belief service for cryptocurrencies.
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