As part of DBS Bank’s foray into digital assets, it has launched its first Security Token Offering (STO) with a $15 million Digital Bond.
Issued via its DBS Digital Exchange, or DDEX, the bond comes with an expiry of 6 months and a coupon rate of 0.60% per annum, which was concluded by way of private placement. DBS is the sole bookrunner for the transaction.
Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS, notes that the initial STO listing marks a milestone as it “highlights the strength of our digital asset ecosystem in facilitating new ways of unlocking value for issuers and investors”. Moreover, it places DBS at the forefront in its offering of digital solutions as asset tokenisation becomes more common.
The digital bonds will be traded in lots of SGD 10,000 as compared to traditional bonds with multiples of SGD 250,000, in hopes of motivating participation from investors. The securities are now available for secondary trading among institutional and accredited investors who are members or applicable end clients on DDEX.