Southeast Asia's Largest Bank DBS Launches First Security Token Offering On Cryptocurrency Exchange

Southeast Asia's largest bank, DBS, has launched its first security token offering (STO) on the cryptocurrency exchange. The cost of DBS Digital Bond is S$15 million. “We expect asset tokenization to become more mainstream,” said a DBS executive. DBS's first security token offering DBS announced its first security token offering (STO) on DBS Digital Exchange (Ddex) on Monday. Priced at S$15 million ($11.37 million), the DBS Digital Bond comes with a six-month maturity and an annual coupon rate of 0.60%. It is offered as a private placement and DBS is the only accountant for the transaction. The bank detailed: This paves the way for other issuers and clients to leverage Ddex's capabilities to efficiently access capital markets for their funding needs and paves the way for more STO issuances and listings on Ddex as asset tokenization becomes more widespread. “This is the first of many steps in the journey to transform traditional bond issuance into a broader digital ecosystem where more inclusive participation of issuers and investors can be rapidly developed,” said Clifford Lee, Head of Global Fixed Income at DBS. “While most bond tokenization practices announced in Asia to date tend to be repackaged forms of a traditional bond issue, the current transaction directly combines current regulatory and tax infrastructure requirements with a direct issue,” Lee continued. smaller lot sizes.” The executive added: This bond token structure was made possible by the progressive development of Singapore's legal and tax infrastructure, which could facilitate the issuance of more STOs to expand and deepen our capital markets. Eng-Kwok Seat Moey, Head of DBS Capital Markets Group. “Our first STO listing on DBS Digital Exchange marks an important milestone… This confirms our ability to deliver integrated solutions across the digital asset value chain.

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