OCBC Breaks New Ground With $1B Tokenized Debt Issuance Platform

Singapore's OCBC Bank has established itself as a blockchain pioneer in debt capital markets, launching what it claims is the world's first comprehensive tokenized commercial paper platform worth $1 billion, according to a Monday report in The Business Times.

The program represents a significant milestone in the convergence of traditional banking and distributed ledger technology, with OCBC becoming the inaugural issuer to deploy blockchain infrastructure throughout all stages of commercial paper operations, from initial issuance through final settlement and ongoing administration.

OCBC's digital program operates on JP Morgan's Kinexys Digital Assets platform, with the US investment bank serving as sole dealer for the issuances. The facility provides an alternative channel for accessing the $1.4 trillion US commercial paper market, offering rapid USD funding capabilities through tokenized instruments.

"Given the immutable and transparent nature of blockchain, parties involved in the transaction can view and verify the same set of data in real-time," OCBC said, highlighting enhanced trust and accountability through auditable transaction records.

The bank completed its first tokenized commercial paper issuance under the program on August 21, selling six-month maturity notes to an accredited institutional investor. OCBC received funding within minutes of the transaction's completion, demonstrating the speed advantages of blockchain-based settlement.

Kenneth Lai, OCBC's head of global markets, positioned the launch within Singapore's advancing blockchain ecosystem. "Asset tokenisation is gaining real momentum," Lai said, noting that the bank previously implemented blockchain capabilities for intraday repo transactions in 2024 and is now expanding into commercial paper markets.

The digital program complements OCBC's existing $25 billion conventional commercial paper facility established in 2011. Both Moody's and Fitch assigned the new blockchain-based program their highest short-term credit ratings of P-1 and F1+ respectively, indicating strong creditworthiness for the tokenized instruments.

Commercial paper represents an "inexpensive" funding source that OCBC will utilize for general corporate purposes, the bank indicated. The short-term debt securities typically mature within 270 days and serve as a key liquidity management tool for financial institutions.

The announcement follows DBS Bank's recent launch of tokenized structured notes on the Ethereum blockchain, highlighting accelerating adoption of distributed ledger technology among Singapore's major financial institutions. The city-state has positioned itself as a hub for regulated digital asset innovation through supportive regulatory frameworks.