South East Asia’s largest bank DBS has launched its first ever Security Token Offering (STO) on its cryptocurrency exchange. The DBS Digital Bond is worth 15 million Singapore dollars. “We expect asset tokens to become increasingly mainstream,” said a DBS executive.
DBS’s First Security Token Offering
DBS on Monday announced its first security token offering (STO) on the DBS Digital Exchange (DDX). DBS Digital Bond, which is valued at 15 million Singapore dollars (US $ 11.37 million), comes with a six-month period and a coupon rate of 0.60% per annum. It is offered as a private placement and DBS is the sole bookrunner for the transaction. Bank Detail:
This paves the way for other issuers and clients to tap on the capabilities of DDX to efficiently access capital markets for their funding needs and set the stage for more STO issuance and listing on DDX as asset tokenization becomes mainstream. It becomes.
Clifford Lee, Global Head of Fixed Income at DBS, said, “This is the first of several steps in the journey of evolving traditional bond issuance into a broader digital ecosystem where more inclusive issuer and investor partnerships can be rapidly developed. “
Lee continued: “While most of the bond tokenization exercises announced in Asia to date have been repackaged as traditional bond issues, the current transactions directly address the requirements of existing legal and tax infrastructure on digital exchanges in smaller lot sizes. On connects with issuance.” The executive said:
This bond token structure was only made possible due to the progressive development of Singapore’s legal and tax infrastructure, which could facilitate the issuance of more STOs to broaden and deepen our capital markets.
Eng-Kwok Sit Moe, Group Head, Capital Markets at DBS, commented: “Our first STO listing on the DBS Digital Exchange is a significant milestone…it strengthens our ability to provide integrated solutions across the digital asset value chain. Is, from the origins of the deal to tokens, listings, trading and custody, which in turn opens the door for more STOs on DDX. ” He emphasized:
We expect asset tokenization to become increasingly more mainstream as more of our clients begin issuing security tokens as part of their capital fund-raising exercise, which we believe will support Singapore’s ambitions for digital assets in Asia. Will promote to become a center.
DBS Digital Exchange was Launched In December last year. It provides exchange services between “four fiat currencies (SGD, USD, HKD, JPY)” and four “cryptocurrencies, namely bitcoin, ether, bitcoin cash, and. Xrp, “Its website states.
Bank Disclosure In its first quarter earnings call, it said its crypto exchange “enjoyed strong market traction since launch.” Notably, its “daily trading volume has grown 10-fold since the opening week of launch, and the exchange currently serves more than 120 participants. DBS has over SGD 80 million in digital assets across its custodial service. , ”The bank revealed. In May, the bank launched A trust service for cryptocurrencies.
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