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Singapore's second-largest bank Oversea-Chinese Banking Corp said on Monday (Aug 25) it has established a US$1 billion digital US commercial paper programme, bolstering its dollar funding capabilities.
US commercial papers are a relatively inexpensive funding source that corporations use to meet their immediate cash flow needs. Through the programme, OCBC aims to tap into the US$1.4 trillion US commercial paper market.
The bank has leveraged blockchain to establish the programme, which will complement its US$25 billion conventional US commercial paper programme established in August 2011.
JP Morgan's Digital Debt Service application will act as the sole dealer.
The funds raised will be used for general funding purposes, OCBC said.
"Singapore's blockchain ecosystem is advancing fast, and asset tokenisation is gaining real momentum. Our focus is now firmly on commercialisation," said Kenneth Lai, OCBC's head of global markets.
The first US commercial paper tokenised issuance under the programme took place on Aug 20.
Source: Reuters/ec
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FAST
Singapore's second-largest bank Oversea-Chinese Banking Corp said on Monday (Aug 25) it has established a US$1 billion digital US commercial paper programme, bolstering its dollar funding capabilities.
US commercial papers are a relatively inexpensive funding source that corporations use to meet their immediate cash flow needs. Through the programme, OCBC aims to tap into the US$1.4 trillion US commercial paper market.
The bank has leveraged blockchain to establish the programme, which will complement its US$25 billion conventional US commercial paper programme established in August 2011.
JP Morgan's Digital Debt Service application will act as the sole dealer.
The funds raised will be used for general funding purposes, OCBC said.
"Singapore's blockchain ecosystem is advancing fast, and asset tokenisation is gaining real momentum. Our focus is now firmly on commercialisation," said Kenneth Lai, OCBC's head of global markets.
The first US commercial paper tokenised issuance under the programme took place on Aug 20.
Source: Reuters/ec
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
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Stay updated with notifications for breaking news and our best stories
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