Singapore’s largest bank DBS Bank has placed on its own DBS Digital Exchange digital notes worth S$15 million ($11.3 million) with a six-month maturity and a coupon rate of 0.6% per year. CoinDesk reports.
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This is the first issuance security tokens (STO) on the platform. The notional value of the instrument is ten times smaller than its traditional counterpart – S$10,000 ($7,600).
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Institutional and accredited clients of the platform will enable secondary trading of the digital notes.
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DBS said that the DBS Digital Exchange infrastructure is ready for new issuances and listings of security tokens. They offer the same legal guarantees and protections as traditional debt securities.
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Eng-Kwok Seat Moey, head of DBS’s capital markets group, predicted that tokenisation will become a widespread practice in corporate fundraising.
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In the first quarter of 2021, trading on the DBS Digital Exchange grew by more than tenfold.
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In May, DBS Bank added investment trusts based on Bitcoin, Ethereum, Bitcoin Cash and XRP to its product lineup.
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