Bank AI

The Philippines has successfully sold $270 million worth of its maiden tokenized treasury bonds, according to a Bloomberg <a rel="nofollow" href="https://www.bloomberg.com/news/articles/2023-11-20/philippines-sells-270-million-of-maiden-tokenized-bonds" target="_blank">report</a>. The tokenized bonds, due in November 2024 with a 6.5% coupon rate, garnered immense interest from investors. Additionally, the government of the Philippines has been lauded for showing efforts to embrace digital technology in the bond market. 
<h2 id="bureau-of-treasury-reveals-biding-amount-of-tokenized-bonds">Bureau of Treasury Reveals Biding Amount of Tokenized Bonds</h2> 
The Bureau of Treasury (BTr) revealed that bids for the tokenized Treasury bonds (TTBs) reached a total of&nbsp; 31.426 billion Pesos, surpassing three times the 10 billion pesos minimum offer. This substantial demand reflects a strong appetite among institutional investors for peso-denominated tokenized assets, showcasing the effectiveness of the government’s diversification strategy. 
The BTr appointed the Land Bank of the Philippines and the Development Bank of the Philippines (DBP) as issue managers for TTBs. They will oversee the issuance and the TTBs will be offered with a one-year fixed rate. 
Scheduled to commence on November 20, the official offering of the tokenized bonds will begin, and the issuance will commence on November 22. 
As part of the National Government’s Government Securities Digitalization Roadmap, the maiden issuance of TTBs serves as a proof of concept for the broader application of distributed ledger technology (DLT) in the government bond market. The move is aimed at reducing risks and costs associated with traditional bond transactions. 
Under the Treasury’s guidelines, qualified investors can borrow a minimum of PHP10 million (US$179,229) in tokenized bonds, with increments of PHP1 million (US$17,923). Buyers had to submit their bids by around 12:30 p.m. on November 20. The authorities will announce the acceptance of proposals later on the same day. 
Also Read: <a href="https://coingape.com/microsofts-satya-nadella-hires-sam-altman-greg-brockman/" target="_blank" rel="noopener">Microsoft’s Satya Nadella Hires Sam Altman And Greg Brockman</a> 
<h2 id="philippines-s-stance-on-tokenization">Philippines’s Stance on Tokenization</h2> 
The Philippines now joins other countries in the region <a href="https://coingape.com/philippines-initiates-179-mln-tokenized-treasury-bonds-revolutionizing-digital-finance/" target="_blank" rel="noopener">exploring tokenized real-world assets</a>. This follows Hong Kong’s successful issuance of a HKD800 million (US$102.5 million) tokenized green bond earlier this year. Singapore, a notable financial hub, has also embraced <a href="https://coingape.com/glossary/blockchain/" target="_blank" rel="noopener">blockchain technology</a>, launching pilot initiatives in collaboration with institutions like JPMorgan, DBS Bank, and BNY Mellon. 
BTr Deputy Treasurer Erwin Sta. Ana emphasized the importance of this proof of concept, stating that it serves as the starting point for the National Government’s broader agenda of democratizing investment through digital technology. 
The initiative aims to significantly reduce settlement risks and friction costs, ultimately fostering a financially inclusive local bond market. 
Also Read: <a href="https://coingape.com/sam-altman-planned-to-take-on-nvidia-with-ai-focused-chips/" target="_blank" rel="noopener">Sam Altman Planned to Take On Nvidia With AI-Focused Chips</a> 
The post <a rel="nofollow" href="https://coingape.com/philippines-makes-historic-move-with-270-mln-maiden-tokenized-bond-sale/">Philippines Makes Historic Move With $270 Mln Maiden Tokenized Bond Sale</a> appeared first on <a rel="nofollow" href="https://coingape.com">CoinGape</a>.

Philippines Makes Historic Move With $270 Mln Maiden Tokenized Bond Sale

Table of Contents

Coingape News Media

Other articles published on Nov 20, 2023

Bitcoin Price Surges as Cryptocurrency Market Begins to Recover

Osaka Digital Exchange introduces Japan’s first digital securities trading platform

Terra (LUNA) Price Predictions: Understanding The Dynamics

OKX Wallet Integrates with Injective for Advanced DeFi Capabilities

Crypto Market Predictions: What’s Next for Major Altcoins?

The Shocking Truth Why Galaxy Fox Will Outperform Dogecoin, Floki and Bonk

Join our free newsletter for daily crypto updates!