The Philippine Department of Finance announced that it will issue its first P10 billion ($179 million) one-year tokenized government bond after canceling the traditional auction scheduled for November 20.
The Treasury Department will offer tokenized bonds to institutional buyers in minimum denominations of P10 million in increments of P1 million. The bond is valid for one year and has a maturity date of November 2024. The final interest rate will be revealed on the issuance date, according to Bloomberg reports.
The bond will be issued by the state-owned Development Bank of the Philippines and Land Bank of the Philippines.
Asked whether the government was exploring the continued use of tokenized real-world assets and bonds, Deputy Treasurer Erwin Starr said it would “continue to look at the technology and test how far we can go.”
The Philippines’ move to issue tokenized bonds instead of traditional bonds comes amid growing interest among Asian governments in the tokenized bond market. In February this year, Hong Kong issued US$100 million in tokenized green bonds under its green bond program. The government tokenized the bonds using Goldman Sachs’ tokenization protocol, which is valid for one year.
Another Asian country, Singapore, recently launched a series of pilot Partnering with JPMorgan, DBS, BNY Mellon and investment firm Apollo to tokenize real-world assets.The United Arab Emirates is also working with HSBC Tokenization bonds.
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In addition to the growing popularity of blockchain-based tokenization of real-world assets in Asia, Israel’s Tel Aviv Stock Exchange has also completed a proof-of-concept for the tokenization of fiat currencies and government bonds.
The use of blockchain technology to tokenize real-world assets has recently gained popularity among governments. Interest from financial giants such as JPMorgan Chase and HSBC has also contributed to the development of this trend.
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