DBS Bank, a Singaporean largest financial institution, has issued a S$15 million (~$11.3) digital bond via security token offering (STO). According to an announcement, the bank issued the digital bond via its own cryptocurrency exchange Digital Exchange (DDEx). The DBS Digital Bond has a six-month tenor with and coupon rate of 0.60% per annum.
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"This paves the way for other issuers and clients to tap on DDEx's capabilities to efficiently access capital markets for their funding needs and sets the stage for more STO issuances and listings on DDEx as asset tokenisation turns mainstream," the bank said.
Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS, says that the digital bond opens a "tremendous opportunity" for corporates. As iHodl earlier reported, DBS Bank admitted that interest around the cryptocurrency market is "quite high" as only four cryptocurrencies on its digital assets exchange called DBS Digital Exchange saw 120 clients onboard with $40 million of daily trading volumes.
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