Singapore-based OCBC Bank has joined forces with global private market exchange ADDX to distribute its inaugural tokenized equity-linked structured note to accredited investors. This partnership marks a significant milestone for both entities, with OCBC Bank becoming the first Singaporean bank to list a product on ADDX’s platform, showcasing their commitment to expanding their investment product offerings.

The newly launched fixed coupon note, which debuted in early May, is directly linked to shares of a prominent US-listed technology giant. It has been made available on the ADDX platform with a minimum investment size of US$50,000. Fixed coupon notes are designed as equity-linked structured notes that provide regular distributions at predetermined intervals, provided that there are no exceptional or trigger events according to the terms and conditions. These notes offer investors an opportunity to generate additional cash flow while gaining potential exposure to the underlying securities.

By partnering with digital players like ADDX and deepening relationships with high-growth and emerging sectors, OCBC aims to enhance its customer proposition and tap into a broader investor base. The tokenization of the fixed coupon note will allow more accredited investors to access this innovative product.

ADDX, headquartered in Singapore, aims to democratize private markets and promote fairness in investing. Leveraging blockchain and smart contract technology, ADDX streamlines the issuance, custody, and distribution of private market products by reducing manual interventions. The platform’s adoption of digital securities enhances efficiency and enables fractionalized investments in a scalable and commercially viable manner.

To date, ADDX has listed over 70 deals on its platform and has collaborated with prominent organizations such as Hamilton Lane, Partners Group, Investcorp, Singtel, CGS-CIMB, and Temasek-owned entities like Mapletree, Azalea, SeaTown, and Fullerton Fund Management. Asset classes available on ADDX include private equity, hedge funds, venture capital, private credit, real estate, debt, and structured products.

Mr. Kenneth Lai, OCBC Bank’s Head of Global Treasury, expressed his satisfaction with the partnership, stating that the bank’s comprehensive range of treasury products now includes sustainability-linked interest rate swaps, cross currency swaps, structured deposits, and green bonds. He emphasized the importance of continued innovation and finding new distribution channels for their products. Being the first Singaporean bank to offer an equity-linked structured note in tokenized form on ADDX reflects OCBC Bank’s commitment to diversifying and appealing to ADDX’s global accredited investor base. Lai expressed optimism that this collaboration would lead to a broader range of relevant and appealing investment products.

Ms. Oi-Yee Choo, CEO of ADDX, highlighted the unique risk and return characteristics of structured products that are not commonly found in traditional investments. She stressed that these products present an attractive option for investors seeking yield-generating opportunities in the current economic climate. Structured products typically combine a fixed-income component with a derivative component, providing exposure to underlying assets such as stocks or commodities. Choo added that structured products would play a crucial role in ADDX’s issuance strategy moving forward.

Choo also emphasized the importance of catering to investors’ diverse needs by offering a comprehensive range of products that maximize returns while diversifying risks. She expressed gratitude for the opportunity to work with OCBC Bank, a reputable issuer with a strong track record, to serve investors well in a volatile market. This collaboration represents the beginning of a broader partnership that leverages ADDX’s expertise in alternative investments and OCBC Bank’s wealth management capabilities to provide investors with unique investment opportunities. Furthermore, ADDX and OCBC are actively exploring the issuance of commercial papers and have additional structured products in the pipeline.