Singapore’s second-largest bank, Oversea-Chinese Banking Corp (OCBC.SI), has said it has established a $1 billion digital U.S. commercial paper programme, bolstering its dollar funding capabilities.
According to Reuters, U.S. 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 $1.4 trillion U.S. commercial paper market.
“The bank has leveraged blockchain to establish the programme, which will complement its $25 billion conventional U.S. commercial paper programme established in August 2011.”
OCBC said ‘J.P. Morgan’s Digital Debt Service application will act as the sole dealer. The funds raised will be used for general funding purposes.’
OCBC’s head of global markets, Kenneth Lai, stated that ‘Singapore’s blockchain ecosystem is advancing fast, and asset tokenisation is gaining real momentum. Our focus is now firmly on commercialisation.’
The first U.S. commercial paper tokenized issuance under the programme took place on August 20.
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