TL;DR
Oversea-Chinese Banking Corporation (OCBC) has established a US$1 billion digital U.S. commercial paper (USCP) programme using blockchain tokenisation to speed issuance, settlement and lifecycle management. The programme sits alongside OCBC’s existing US$25 billion conventional USCP facility and completed its first tokenised issuance in August 2025. J.P. Morgan’s Digital Debt Service (Kinexys) is the platform/dealer; State Street acted as the first third-party custodian and anchor investor for a US$100m tranche. The move is pitched as a commercial step for faster, T+0-capable short-term dollar funding and a milestone for institutional tokenised debt.
OCBC announced a US$1 billion digital U.S. commercial paper programme that uses blockchain tokenisation for issuance, settlement and servicing. The digital programme complements OCBC’s conventional USCP programme (about US$25 billion). J.P. Morgan’s Digital Debt Service (built on Kinexys) will act in a principal/placement role, and State Street joined as the first third-party custodian — participating as anchor investor in a US$100 million inaugural transaction. OCBC recorded its first tokenised issuance under the programme in late August 2025.
Kenneth Lai, OCBC’s head of global markets, said: “Singapore's blockchain ecosystem is advancing fast, and asset tokenisation is gaining real momentum. Our focus is now firmly on commercialisation.”
State Street emphasised the settlement and custody features: “Through our direct participation in J.P. Morgan’s Digital Debt Service, we are advancing our ability to deliver a fully integrated front-, middle-, and back-office solution built on blockchain technology,” said Donna Milrod, Chief Product Officer at State Street.
Speed & liquidity: Tokenised CP can settle with precision timing (T+0 is possible), meaning issuers receive funds much faster than traditional multi-step settlement. That improves liquidity resilience for banks that rely on short-term dollar funding.
Lifecycle on-chain: Issuance, settlement, record-keeping and servicing performed on-chain reduces reconciliation work and lowers operational risk.
Institutional build-out: Major incumbents (J.P. Morgan as platform and dealer; State Street as custodian) signal that tokenised debt is moving beyond pilots into commercial activity.
Market access: OCBC aims to tap the large USCP market (approx. US$1.4 trillion) as an alternative channel for USD funding.
| Feature | Conventional USCP (OCBC) | OCBC digital USCP (tokenised) |
|---|---|---|
| Programme size (OCBC) | Part of US$25bn conventional programme. | New US$1bn digital programme. |
| Dealer / platform | Traditional dealer network | J.P. Morgan Digital Debt Service (Kinexys) as dealer/platform. |
| Settlement speed | T+0–T+2 conventional windows; often same-day depending on market | Near-instant / precision-timed (T+0 option). |
| Custody | Traditional custodians via intermediated chains | On-chain record; third-party custodians (State Street) can maintain digital wallets. |
| Lifecycle | Off-chain reconciliations | Issuance, settlement, servicing on-chain. |
| Investor base | Institutional money funds, corporates | Institutional investors initially (anchor investor: State Street Investment Management). |
Banks & treasurers: Tokenised issuance offers a faster, alternative funding channel for USD needs. It may reduce intraday funding gaps and lower operational complexity for short-dated instruments.
Institutional investors/custodians: The involvement of State Street suggests traditional custody providers will adapt to manage on-chain records, not displace them. Expect institutional access to tokenised debt to expand in the US first; some services are currently US-only.
Regulation & market structure: Singapore market participants should watch MAS guidance and international custody rules; legal and regulatory frameworks for tokenised securities remain a key enabler. (MAS has previously run pilots for tokenised assets — readers should track MAS announcements.)
Can retail investors buy OCBC’s tokenised commercial paper?
Not at launch — tokenised CP transactions are currently institutional in scope (anchor investor / custodial onboarding). Retail access would depend on secondary structures and local regulatory approvals.
Is this programme regulated by MAS?
OCBC and the platform operate within U.S. issuance and custody regimes for the initial transactions; Singapore-based participants should monitor MAS guidance as tokenisation activity expands.
Does tokenisation change credit risk?
No — tokenisation changes the plumbing (settlement, records), not issuer credit. Investors still rely on the issuer’s credit and ratings.
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