Connect with us

Hi, what are you looking for?

HEADLINES

First-ever tokenized treasury bonds in PH now available via PDAX

BTR awarded PHP 15 billion (USD 270 million) of the Maiden tokenized treasury bonds. The bonds were offered to institutional investors, and were priced at a coupon of 6.5% per annum. Bids totalled PHP 31.426 billion, more than triple the initial offer size of PHP10 billion.

PDAX announced its involvement with the Bureau of the Treasury of the Philippines (BTR), Landbank of the Philippines, and the Development Bank of the Philippines (DBP) enabling the Republic to issue its first-ever Tokenized Treasury Bonds (TTBs).

During the Bureau of the Treasury’s 126th Anniversary event, it was announced that the BTR awarded PHP 15 billion (USD 270 million) of the Maiden tokenized treasury bonds. The bonds were offered to institutional investors, and were priced at a coupon of 6.5% per annum. Bids totalled PHP 31.426 billion, more than triple the initial offer size of PHP10 billion.

“PDAX is honored to be the BTR’s technology partner in the introduction of TTBs in the country. Offering these bonds to institutional investors serves as the first step to a more seamless trading and settlement experience for government securities in the Philippine financial markets,” said PDAX CEO, Nichel Gaba. “Through greater use of blockchain technology, many risks such can be eliminated, deepening liquidity in the capital markets”

This milestone collaboration signals a noteworthy advancement in the Philippines’ cryptocurrency sector, aligning the country with others like, Singapore, and Hong Kong in leveraging tokenized bonds to enhance transparency and interoperability, while concurrently reducing size and liquidity requirements through lower transaction costs.

Advertisement. Scroll to continue reading.

“The issuance of TTBs is part of the government securities digitalization roadmap which aims to promote financial inclusion and deepen market liquidity,” shared Deputy Treasurer of the Philippines, Erwin Sta. Ana. “In the future, we envision these (TTBs) to be a security that our retail investors can acquire in denominations that are even lower than our existing retail products. In addition, we envision market participants to be able to trade these securities among themselves and to be able to settle their transactions in real-time. Turning this vision into reality, however, will require us to build the infrastructure that will enable it incrementally. Today, we take the first step in this journey,” he added. 

While the Maiden Tokenized Treasury Bonds are only made available to Qualified Institutional Buyers through the DBP and Landbank, retail investors can access other treasury bills on the PDAX app. Bonds on PDAX eliminate the need for physical visits to a financial institution’s office. For as low as Php 500, investors can access low-risk instruments backed by the full faith and credit of the Philippine government. The tokenized T-Bills available provide a yield of around 6.2% and have a maturity of 91 days.

Advertisement
Advertisement
Advertisement

Like Us On Facebook

You May Also Like

HEADLINES

There is opportunity even in the most challenging times. This was the mindset the owner of Express Movers Logistics Services, Tara Cabling, maintained when...

HEADLINES

The cost of remittances has long been a global concern, with the United Nations Sustainable Development Goal (UNSDG) aiming to lower fees to 3%...

HEADLINES

The collaboration aims to introduce local businesses and residents to blockchain-based financial tools while also providing digital literacy programs on decentralized finance (DeFi) and...

HEADLINES

This move underscores Globe's commitment to expanding its services to meet the evolving needs of its customers, particularly the significant Overseas Filipino Worker (OFW)...

HEADLINES

Valero Telepark, which houses data equipment and technical offices, distinguished itself for its energy conservation efforts, driven by Globe’s strategic collaboration with US-based technology...

HEADLINES

Boomi AI Studio offers a fully integrated environment for AI agent design, governance, and orchestration.

HEADLINES

Braving the scorching heat, around 30 employees came together to plant 1,000 mandarin, and coffee seedlings in Sitio Sapangbato, Angeles, Pampanga, supporting the local...

HEADLINES

Signify is set to invest more in research and development to pioneer next-generation lighting and digital solutions.

Advertisement