Southeast Asia’s largest bank, DBS, has launched its first Security Token Offering (STO) on its DBS Digital Exchange (Ddex).
Clifford Lee, Global Head of Fixed Income at DBS, announced Monday its first security token offering (STO) on the DBS Digital Exchange.
According to him, the DBS Digital Bond, priced at 15 million Singapore dollars (US$11.37 million), comes with a six-month tenor and coupon rate of 0.60% per annum.
He said the token is offered as a private placement and DBS is the sole bookrunner for the transaction.
Lee words: ”This marks the first of many steps in the journey to evolve the traditional bond issuance into a broader digital ecosystem where the more inclusive issuer and investor participation can be rapidly developed.
“While most bond tokenization exercises announced in Asia to date tend to be repackaged forms of a conventional bond issue, the current transaction directly combines existing legal and tax infrastructure requirements with a direct issuance on the digital exchange in smaller lot sizes.
”This bond token structure was only made possible because of the progressive development of Singapore’s legal and tax infrastructure, which can facilitate more STO issuances to broaden and deepen our capital markets.”
On his part, DBS Group Head of Capital Markets, Eng-Kwok Seat Moey, said: “Our maiden STO listing on the DBS Digital Exchange is a significant milestone.
”This cements our ability to provide integrated solutions across the digital asset value chain, from deal origination to tokenization, listing, trading, and custody, which in turn opens the door for more STOs on Ddex.
”We expect asset tokenisation to increasingly become more mainstream as more of our clients start to embrace security token issuance as part of their capital fundraising exercise which we believe will boost Singapore’s ambitions to be a digital asset hub in Asia.”