The digital securities market is growing rapidly. With more and more people investing in digital assets like Bitcoin and Ethereum, new markets for issuing and trading digital securities are emerging. In Singapore, DBS Bank hosted its first digital securities offering, which made use of the DBS Vantara Platform. The offering was held for the first time in Southeast Asia, and it was the first time that DBS Bank issued a digital security in Singapore.
DBS Bank Limited, a Singapore-based bank that specialises in digital finance, has today announced that it will be the first bank in Asia to issue digital securities on a blockchain. The new blockchain-based digital securities, known as “Digital Certificates’, have been designed to provide investors with tradable digital securities in a private placement offering.
DBS Bank Ltd. plans to expand its range of services to customers. As a result of these efforts, the Singapore-based company has announced an $11.35 million digital bond issue, which is the company’s first digital securities issue (DSO). Bonds can be obtained through DDEx, a digital exchange operated by DBS Bank itself. It should be noted that this is only the first step. DBS Bank expects that if this DSO is successful, others will seek to emulate it. This paves the way for other issuers and customers to take advantage of DDEx’s potential to efficiently access the capital markets to meet their funding needs, and sets the stage for more TSO issuances and DDE listings as asset tokenization becomes more prevalent.
As lead underwriter of these digital bonds, DBS Bank structured the bonds with a maturity or tenor of six months and a coupon of 0.6% per annum. To attract as many investors as possible, DBS Bank states that the bonds will be sold in lots of 1/25ths. The ability to do this is an important feature made possible by the use of blockchain technology, such as. B. digital effects. Since the proposed digital bond is in fact a security, the offering must comply with the existing regulatory framework – meaning that access is currently limited to accredited investors.
Announcing the digital bond, Eng Kwok Sit Moi, managing director of DBS Capital Markets Group, said, Our first STO listing on the DBS Digital Exchange is an important milestone as it highlights the strength of our digital asset ecosystem in enabling new ways to unlock value for issuers and investors. We expect asset tokenisation to become increasingly popular as more of our clients use the issuance of security tokens as part of their capital raising process, which we believe will strengthen Singapore’s ambitions to become a hub for digital assets in Asia.
The news that DBS Bank is launching a digital securities offering comes as no great surprise. A few months ago, a company document was published on the Internet suggesting plans to operate the digital asset sector on a large scale. Although the DBS Bank documentation is long gone, we have since seen the introduction of DDEx, DBS Digital Custody and now the first DSO. As for DBS Digital Custody, DBS Bank said customers have deposited more than $60 million since its launch.