OCBC has launched a US$1 billion digital US commercial paper (USCP) programme using blockchain technology, enabling near-instant settlement of short-term US dollar funding.

The Singapore bank said the move marks the first time a USCP issuer has used blockchain across the entire lifecycle of the securities, covering issuance, settlement, record-keeping and servicing.

The new programme complements OCBC’s existing US$25 billion conventional USCP programme, established in 2011, and provides an alternative channel to tap the US$1.4 trillion USCP market.

Near-instant US dollar funding

By using tokenised securities and on-chain funds, OCBC is able to receive proceeds within minutes instead of waiting for traditional clearing and payment processes. The bank said this capability enhances its liquidity resilience amid an uncertain global economic environment.

The inaugural digital issuance took place on 20 August 2025. The six-month notes were sold to an accredited institutional investor, with funds transferred to OCBC almost immediately upon completion of the transaction.

Commercial papers are typically a low-cost funding source. Proceeds from the programme will go towards OCBC’s general funding purposes.

The new digital programme has been rated P-1 by Moody’s and F1+ by Fitch, the highest short-term ratings from both agencies.

Partnership with J.P. Morgan

The programme is supported by J.P. Morgan’s Digital Debt Service, part of its multi-asset tokenisation platform, Kinexys Digital Assets. J.P. Morgan also acts as sole dealer for the issuance.

Scott Lucas, Head of Markets Digital Assets at J.P. Morgan, said the launch demonstrated how issuers and investors could engage with the USCP market through digital platforms. He added that the partnership with OCBC aligned with the bank’s focus on innovative liquidity solutions.

Strengthening blockchain adoption

OCBC’s latest move builds on its earlier adoption of J.P. Morgan’s Digital Financing application for intraday repurchase (repo) and reverse repo transactions in 2024.

Kenneth Lai, OCBC’s Head of Global Markets, said the new programme underscored the bank’s commitment to commercialising blockchain applications in capital markets.

“Singapore’s blockchain ecosystem is advancing fast, and asset tokenisation is gaining real momentum,” Mr Lai said. “Our new digital USCP programme will deepen investor engagement and sharpen our global capital markets profile. The speed and transparency of this solution have only strengthened our conviction in blockchain’s transformative power.”

What’s next

OCBC said it would continue to explore blockchain applications to strengthen its global funding capabilities and resilience. The digital USCP programme adds to its liquidity management tools, alongside conventional debt markets and intraday repo solutions.