Standard Chartered Bank and UnionBank of the Philippines have completed a proof-of-concept for issuing $187 million of tokenized retail bonds on the blockchain.
According to the press release, UnionBank conducted two-tranche bond issues for three years and five years and three months totaling $187 million, which were reflected in tokenized form on the blockchain.
Singapore-based SC Ventures, Standard Chartered’s financial technology investment arm, was responsible for creating the bond tokenization platform in collaboration with UnionBank. The goal of the project is to provide retail investors with a platform for direct access to bonds.
“The bond infrastructure around the world has been designed primarily for institutional investors and includes a number of intermediaries to buy and then trade bonds, making it less accessible to retail investors,” said Aaron Gwak, head of Capital Markets at Standard Chartered Bank.
It’s not the first time the two banks have teamed up to issue bonds on the blockchain. Earlier this year, Standard Chartered and UnionBank launched Bonds.PH is a platform for retail treasury bonds in collaboration with the Philippine Ministry of Finance and the digital asset exchange PDAX. According to the publication of
the Philippine media PhilStar Global, in 2019, UnionBank released its own PHX stablecoin.
In addition, at the end of last year, the World Wildlife Fund (WWF) and UnionBank began to develop
a Tracey system based on the Streamr blockchain for tracking fish supplies and financial assistance to local fishermen.