Multinational Singapore-based bank DBS has issued a S$15 million (US$11.3 million) digital bond in its first security token offering (STO).

According to a press release shared with CoinDesk on Monday, the DBS Digital Bond, issued via its Digital Exchange (DDEx), has a sixth-month expiry and a coupon of 0.6% per annum. 

The bank was the sole bookrunner for the transaction, which was completed by way of private placement. Differing from traditional wholesale bonds, the digital bond will be traded in lots of S$10,000 (US$7,600).

Related: DBS Bank CEO: We Have Twice as Many Engineers as Bankers

DBS said the move paves the way for other issuers and clients to use DDEx’s infrastructure to “efficiently access capital markets” for their funding needs, and establishes a precedent for further STO issuances and listings.

DBS also said the digital bond complies with the current bond legal framework, providing investors the same legal certainties and protections over their rights as traditional bonds.

“Our maiden 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 of unlocking value for issuers and investors,” said Eng-Kwok Seat Moey, group head of Capital Markets at DBS.

The listing demonstrates the bank’s ability to provide integrated solutions across the digital-asset value chain, Seat Moey said. The bank expects tokenization to become more mainstream as its clients start to embrace STO issuance as part of their capital fund-raising exercise, she added.

Related: DBS Says Bitcoin Affects Stock Markets, Is ‘No Longer Fringe Asset’

The securities are available for secondary trading among institutional and accredited investors who are members or end clients of the bank’s digital exchange.

See also: DBS Says Bitcoin Affects Stock Markets, Is ‘No Longer Fringe Asset’

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