Singapore-based multinational banking corporation, DBS Bank has launched its first ever Security Token Offering or STO by issuing digital bonds.
DBS is digitally bonded cost At $ 11.35 million and comes with a six-month period and a coupon rate of 0.60% annually. The offering was made through a private placement organized by DBS Digital Exchange, or DDEX, marking DDEX’s first STO.
To encourage investor engagement, the bond is scheduled to trade in a board lot of 10,000 Singapore dollars (approximately $ 4,560) – a dramatic decrease compared to a board lot of 250,000 Singapore dollars Traditional wholesale bonds are traded.
The digital bonds will be available for secondary trading to DDEX clients who are accredited or institutional investors.
DBS hopes its offering will pave the way for other issuers to launch security token offerings via the DDEX platform.
England-Kwok Sit Moy, group head of capital markets at DBS, stressed that security tokens provide an efficient and innovative way to raise capital in the Asia-Pacific region – representing over 30% of the currency global private equity markets does. He said:
“Our first STO listing on the DBS Digital Exchange is a significant milestone, as it highlights the strength of our digital asset ecosystem in facilitating new ways for issuers and investors to unlock value. Tokenization will rapidly become more mainstream as more of our clients begin issuing security tokens as part of their capital fundraising.
since Launching in december 2020, Moey estimates the daily volume on DDEx is Increased by 900%, With the platform now serving more than 120 merchants. DBS also has assets of more than $ 60 million in its crypto custody service.
Bank also launched Trust structure Providing investment management services for Bitcoin (BTC), Ether (ETH), XRP, and Bitcoin Cash (BCH) speculators in early May.