invezz.com
Singapore-based multinational Banking Corporation DBS has issued its first security token offering (STO) with an $11 million digital bond.
The announcement, according to DBS, is being issued through its Digital Exchange (DDEx). It comes with a coupon of 0.6% per annum and a 6-month expiry.
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The transaction was executed through private placement and the bank was its sole bookrunner, with the digital bond billed to be traded in lots of $7,600.
The Approval As A Digital Asset Exchange
Last year, DBS announced that it has been approved to operate as a digital asset exchange. The approval comes with three different phases – digital asset custody, a security token platform, and a cryptocurrency exchange, which was rolled out in December.
For the STO, the bank wants to target private equity funds, bonds, and unlisted stocks. However, it wants to consider Asia-Pacific assets under management (AUM), which makes up 28 percent of the global private equity market.
Group Head of Capital Markets at DBS, Eng-Kwok Seat Moey, has commented on the development. He stated that the company wants to offer more services to its teeming clients all over the world. He added,
This cements our ability to provide integrated solutions across the digital asset value chain.
Moey stated that the bank will offer a wide range of services following this launch, which includes custody, trading, listing, and tokenization. He noted that it will create room for more STOs on DDEx.
The launch will encourage the use of DDEx’s infrastructure
DBS noted that the move will be paving the way for other clients and issuers to utilize DDEx’s infrastructure to gain access to capital markets. This, according to the bank, will benefit them for their funding needs, which sets the tone for additional STO listings and issuance.