DBS, Singapore’s largest retail and commercial bank, announced their latest move in the crypto market.
According to the information submitted, DBS has allowed institutional investors who register on the DBS Digital Exchange access to the secondary Digital Bond market. With the issuance of digital bonds, Singapore -based multinational banking company DBS Bank has introduced the Security Token Offering or STO.
Priced at $ 11.35 million, DBS Digital Bond has a term of six months and a coupon rate of 0.60% per annum. The offering was made at the DBS digital exchange and this marks DDEX’s first STO.
The bonds will trade in the amount of 10,000 Singapore dollars equivalent to $ 7,560 to encourage investor engagement. The Singapore -based bank hopes its offering will pave the way for other issuers to introduce security token offerings through the DDEx platform.
Head of Capital Markets Group at DBS, Eng-Kwok Seat Moey emphasized that security tokens offer an effective and powerful way to generate money in the Aisa-Pacific region.
He added that the listing of STOs on the Digital Exchange, DBS is a key milestone as it demonstrates the strength of the digital asset ecosystem in introducing the latest offerings for bond issuers and investors. Moey expects that these assets will become mainstream in line with mass acceptance.
Moey estimates the daily trading volume on DDEX has jumped more than 900% since the exchange launched in December 2020.
