DBS Bank in Singapore overcomes obstacles for STO! Completes issuance of $11.3 million digital bonds.

DBS Bank in Singapore issued a digital bond worth 15 million Singapore dollars (11.3 million US dollars) in its first Security Token Offering (STO).

DBS Digital Bonds

According to a report by CoinDesk, Singapore's DBS Bank has issued its first batch of digital bonds worth a total of 15 million Singapore dollars (11.3 million US dollars) through its digital exchange, DDEx. The bonds have a maturity of six months with a coupon rate of 0.6% per annum. The issuance of these bonds was done through a private placement, with the bank being the sole underwriter. Unlike traditional wholesale bonds, the maximum transaction size for digital bonds is 10,000 Singapore dollars (7,600 US dollars). These securities will be tradable in the secondary market on DDEx between institutional and accredited investors.

DBS Bank stated that this issuance of digital bonds lays the foundation for future adoption on DDEx, allowing other issuers and clients to access the capital markets efficiently to meet their financing needs, and sets a precedent for further Security Token Offering (STO) issuances and listings. Furthermore, DBS Group emphasized that digital bonds comply with current bond legal frameworks, providing investors with the same legal certainty and rights protection as traditional bonds. Eng-Kwok Seat Moey, Head of Capital Markets Group, stated:

"Our inaugural STO issuance on the DBS Digital Exchange is a significant milestone as it showcases the strength of our digital asset ecosystem in unlocking new value propositions for issuers and investors."

Seat Moey added that as clients begin to embrace STO issuances as part of their financing activities, the bank anticipates that the tokenization of assets or securities will become more mainstream.