OCBC Kicks Off $1bn Digital US Commercial Paper Programme

OCBC, a Singapore bank, has launched a $1 billion digital commercial paper programme to enhance its dollar funding capacity. This move aims to leverage the relatively cost-effective commercial paper market to meet short-term cash flow requirements.

The bank has utilized blockchain technology to establish this digital programme, in addition to its existing $25 billion conventional commercial paper programme. OCBC has partnered with Morgan Digital Debt Service as the sole dealer for the funds raised, which will be used for general funding purposes.

Kenneth Lai, OCBC's head of global markets, highlighted the rapid advancement of Singapore's blockchain ecosystem and the increasing popularity of asset tokenization. The first tokenized commercial paper issuance under this programme took place on August 20.