OCBC has broken new ground by becoming the first bank in Singapore to offer bespoke tokenised bonds to corporate accredited investors (corporate AIs). This landmark move allows corporations with net assets exceeding S$10 million to access flexible, investment-grade bonds structured to meet their unique needs.

The innovative bonds are minted on OCBC’s asset tokenisation platform and transferred to a digital wallet managed by the bank, a significant step towards transforming Singapore’s financial landscape. By tapping into blockchain technology, OCBC is addressing long-standing challenges in the bond market, such as high entry costs and limited portfolio diversification.

Why This Matters

Corporate bonds traditionally come with a steep minimum transaction size of S$250,000, which limits investment options and increases concentration risk. With OCBC’s tokenisation capabilities, investors can now purchase bonds in denominations as low as S$1,000. This opens the door for more diverse portfolios and provides a practical way for businesses to manage cash flow by liquidating smaller investments as needed.

Speaking on this development, Mr Kenneth Lai, Head of Global Markets at OCBC, shared, “As an industry, we have made significant strides in understanding and recognising the vast potential of tokenised assets. As we shift our focus towards commercialisation, we are proud to have developed bespoke tokenised bonds via our asset tokenisation platform. This innovation provides flexible and liquid investment alternatives, bringing tangible benefits to our customers. Leveraging our asset tokenisation capabilities, we will progressively expand our offerings to include other types of tokenised assets.”

A Proven Model

This isn’t OCBC’s first foray into blockchain-powered solutions. In 2024, the bank partnered with Singapore’s Land Transport Authority (LTA) to pilot a blockchain-based conditional payment system for construction projects. The launch of tokenised bonds marks the second commercial use case for the infrastructure OCBC developed in 2022.

OCBC’s inaugural tokenised bond transaction was completed in November 2024 for a mid-sized manufacturing client. The client, who was pivoting away from fixed deposits to diversify their portfolio, benefited from the faster settlement times offered by tokenisation. The entire transaction—from debiting the client’s account to transferring the digital tokens—was settled within the same business day. This efficiency contrasts sharply with traditional bond transactions, which typically require up to five days for settlement.

Future Opportunities

Looking ahead, OCBC plans to extend its tokenisation services to include a broader range of assets, such as structured products and funds. This aligns with Singapore’s broader push to scale the commercialisation of tokenised assets.

As interest rates begin to fall, corporate AIs who relied on fixed deposits in a high-interest rate environment may see tokenised bonds as an attractive alternative. With faster settlements, lower investment thresholds, and enhanced portfolio flexibility, tokenised bonds are poised to become a key player in the financial strategies of corporate investors.

OCBC’s move to introduce tokenised bonds is a pivotal moment for Singapore’s financial sector, setting the stage for broader adoption of blockchain technology. By offering flexibility, speed, and accessibility, the bank is empowering corporate investors to diversify and future-proof their portfolios.