DBS Issues $15M Digital Bond in First Security Token Offering

The DBS Digital Bond, issued via its Digital Exchange (DDEx), has a sixth-month expiry and a coupon rate of 0.6% per annum.

AccessTimeIconMay 31, 2021 at 7:13 a.m. UTC
Updated Sep 14, 2021 at 1:03 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Multinational Singapore-based bank DBS has issued a S$15 million (US$11.3 million) digital bond in its first security token offering (STO).

According to a press release shared with CoinDesk on Monday, the DBS Digital Bond, issued via its Digital Exchange (DDEx), has a sixth-month expiry and a coupon of 0.6% per annum. 

The bank was the sole bookrunner for the transaction, which was completed by way of private placement. Differing from traditional wholesale bonds, the digital bond will be traded in lots of S$10,000 (US$7,600).

DBS said the move paves the way for other issuers and clients to use DDEx's infrastructure to "efficiently access capital markets" for their funding needs, and establishes a precedent for further STO issuances and listings.

DBS also said the digital bond complies with the current bond legal framework, providing investors the same legal certainties and protections over their rights as traditional bonds.

"Our maiden STO listing on the DBS Digital Exchange is a significant milestone, as it highlights the strength of our digital asset ecosystem in facilitating new ways of unlocking value for issuers and investors," said Eng-Kwok Seat Moey, group head of Capital Markets at DBS.

The listing demonstrates the bank's ability to provide integrated solutions across the digital-asset value chain, Seat Moey said. The bank expects tokenization to become more mainstream as its clients start to embrace STO issuance as part of their capital fund-raising exercise, she added.

The securities are available for secondary trading among institutional and accredited investors who are members or end clients of the bank’s digital exchange.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.