The Philippines is set to offer the country’s first tokenized treasury bonds, a novel way of issuing debt securities using blockchain technology.<h2 id="header-0">$179 million tokenized bond issuance</h2>According to a <a href="https://www.bloomberg.com/news/articles/2023-11-16/philippines-to-sell-tokenized-treasury-bonds-for-the-first-time#xj4y7vzkg" rel="noopener noreferrer nofollow">report</a> by Bloomberg on Thursday, the Bureau of the Treasury announced that it will issue 10 billion pesos ($179 million) of one-year tokenized bonds next Monday after canceling the conventional auction scheduled for the same day. The bonds will be issued by the Development Bank of the Philippines, a state-owned entity, together with the Land Bank of the Philippines.The tokenized bonds will be sold to institutional investors at a minimum denomination of 10 million pesos, with increments of 1 million pesos. The bonds will have a one-year validity, maturing in November 2024. The treasury bond interest rate has yet to be determined and will be confirmed on the date of issuance.Deputy Treasurer Erwin Sta said that the government is exploring the potential of tokenizing real-world assets and bonds and will “continue to study the technology and test how far we can take it.”Tokenization is the process of converting physical or digital assets into digital tokens that can be stored, transferred and traded on a blockchain network. Tokenization can offer several benefits, such as lower costs, faster transactions, greater transparency and enhanced security.<h2 id="header-1">Asian surge in tokenization</h2>The Philippines is not the only Asian country that is experimenting with tokenized bonds. This latest bond tokenization project follows hot on the heels of a similar move in Singapore. Earlier this week, British banking conglomerate Standard Chartered, through its Singapore-based fintech investment subsidiary SC Ventures, <a href="https://medium.com/&#64;coinness.gl/libeara-gears-up-to-offer-tokenized-singapore-dollar-government-bonds-8e9ca08920e5" rel="noopener noreferrer nofollow">unveiled</a> a new platform called Libeara. Libeara is gearing up to offer the first-ever tokenized Singapore-dollar government bond fund.In February, Hong Kong issued $100 million of tokenized green bonds under its Green Bond Programme, using Goldman Sachs’ tokenization protocol. The tokenized green bonds, a first-of-its-kind issuance, have a one-year validity and aim to support environmental projects in the region.Authorities in Singapore have also launched a series of <a href="https://blockworks.co/news/jpmorgan-tokenized-blockchain-portfolio-avalanche" rel="noopener noreferrer nofollow">pilots</a> on tokenizing real-world assets in collaboration with JPMorgan, DBS Bank, BNY Mellon and Apollo, an investment firm. The pilots will test the feasibility and efficiency of tokenizing assets such as equities, bonds and funds. The United Arab Emirates (UAE) <a href="https://www.ledgerinsights.com/tokenized-bonds-hsbc-orion-listed-on-adx/" rel="noopener noreferrer nofollow">partnered</a> with HSBC to conduct the tokenization of bonds as well.The tokenization of real-world assets is not limited to Asia. Israel’s Tel Aviv stock exchange <a href="https://www.fireblocks.com/press/the-tel-aviv-stock-exchange-and-the-israeli-ministry-of-finance-successfully-completed-the-project-eden-proof-of-concept/" rel="noopener noreferrer nofollow">completed</a> a proof-of-concept for tokenizing fiat and government bonds, demonstrating the potential of blockchain technology to transform the capital markets.The tokenization of real-world assets using blockchain technology is a growing trend among governments and financial institutions. <a href="https://www.bcg.com/publications/2022/relevance-of-on-chain-asset-tokenization" rel="noopener noreferrer nofollow">According</a> to the Boston Consulting Group, tokenized assets could reach a market capitalization of $16 trillion by 2030. By issuing tokenized bonds, the Philippines is joining the ranks of the pioneers in this field, opening up new possibilities and opportunities for the crypto industry and the economy as a whole.

Philippines breaks new ground in first-ever tokenized bonds sale

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