OCBC Launches Tokenised Bonds for Corporate Investors, Pioneering Innovation in Singapore

​Oversea-Chinese Banking Corporation (OCBC) has introduced a new offering for corporate accredited investors: bespoke tokenised bonds. This makes OCBC the first bank in Singapore to issue tokenised bonds, marking a significant step in the adoption of blockchain technology within traditional finance.

The tokenised bonds, which are structured based on the client’s specific requirements for tenor and yield, are linked to investment-grade bonds. They are minted and transferred to clients through OCBC’s asset tokenisation platform, providing an innovative way for corporate clients to manage their investment portfolios.

A mid-sized manufacturing company in Singapore became the first client to complete a transaction, with OCBC minting a tokenised bond with a tenure of under a year in November 2024. The tokenised bonds are available in denominations of $1,000, making them more accessible compared to the typical $250,000 minimum transaction size for corporate bonds. This flexibility enables investors to build more diversified portfolios with smaller denominations, democratizing access to bond markets for a wider range of corporate investors.

This launch represents the second use of OCBC’s blockchain infrastructure, which was developed in 2022. The first commercial application was a pilot project with the Land Transport Authority (LTA) for a blockchain-based conditional payment solution in construction projects.

Kenneth Lai, head of global markets at OCBC, highlighted the bank’s commitment to advancing tokenised assets. "As an industry, we have made significant strides in recognising the potential of tokenised assets. This innovation offers flexible and liquid investment alternatives, bringing tangible benefits to our clients," he said.

With the launch of tokenised bonds, OCBC plans to expand its offerings further, providing corporate clients with a broader range of tokenised investment products in the future.