Singaporean bank DBS has just issued a $15 million (11.3 million in US dollars) digital bond in its first security token offering (STO), CoinDesk has learned.
The DBS Digital Bond will be issued through the company’s Digital Exchange (DDEx) and has a sixth-month expiry and a coupon rate of 0.6% per annum.
The transaction has been carried out through a private placement. It is worth mentioning that the digital bond will be traded in batches of $10,000 ($7,600 in US dollars).
According to the bank, the transaction is aimed at promoting the use of DDEx’s infrastructure among issuers and clients to “efficiently access capital markets” for their funding needs. In addition, the institution claims that its digital bond complies with the current legal framework and offers users the same protections as traditional bonds.