OCBC Launches $1 Billion Digital U.S. Commercial Paper Programme, Pioneering Blockchain-Based Funding

Singapore’s OCBC Bank, the country’s second largest, has initiated a $1 billion digital U.S. commercial paper (CP) programme, venturing into the realms of digital finance. It uses blockchain technology for more efficient issuance and settlement in short-term corporate funding. Through tokenisation, OCBC strengthens its U.S. dollar funding capabilities and becomes a frontrunner in Asia for tokenized financial instruments.

What Is A Commercial Paper?

Commercial papers are short-term debts used by corporations to manage capital and cash flow, typically maturing within a few days to a year. The U.S. commercial paper market is valued at approximately $1.4 trillion. Traditionally, issuance involved banks, brokers, and clearinghouses, which is efficient but slow and manual, causing operational delays and settlement inefficiencies.

Blockchains and Commercial Papers

OCBC’s tokenized CP program allows near-instant issuance, settlement, and trading of commercial papers on a blockchain. Tokenisation offers a digital record of each issuance on an immutable ledger, with investors receiving tokens denoting fractional ownership. Smart contracts handle transactions, settlements, and compliance checks, reducing intermediaries, cutting costs, and increasing transparency.

OCBC’s Track Record in U.S. Commercial Paper

OCBC launched a $25 billion conventional U.S. CP programme in 2011. The new digital programme complements traditional channels, serving institutional investors while testing blockchain settlement. The first tokenized issuance of the $1 billion programme occurred on August 20, 2025, with J.P. Morgan Digital Debt Service as the sole dealer.

Strategic Benefits of a Tokenized Commercial Paper

Key benefits of the digital CP program include:

• Boosted Funding Flexibility: Swift access to short-term capital improves balance sheet management.
• Lower Operational Costs: Fewer manual processes and intermediaries reduce administrative expenses.
• Accelerated Settlement: Near real-time issuances and trades improve liquidity.
• Transparency for Investors: Immutable blockchain records enhance trust and compliance.
• Infrastructure Expansion: Tokenization can extend to bonds, trade finance instruments, and other corporate debt.

Overview of the Digital CP Program

Commercial paper issuances are represented as digital tokens on blockchain. Token holders receive interest and principal repayments, with features including:

• Smart Contracts: Automated enforcement of rules on compliance and settlement.
• Transparency: Blockchain records reduce reconciliation needs and enable auditing.
• Efficiency: Fractional CP trading enhances liquidity.
• Security: Decentralized ledger reduces fraud risk.

Singapore’s Blockchain Ecosystem

The initiative highlights Singapore’s push as a global digital finance hub. The Monetary Authority of Singapore (MAS) supports fintech innovation through sandbox programs, encouraging adoption of blockchain across banks. Benefits include cross-border financing, reduced operational risks, and a thriving innovation ecosystem.

Compliance and Regulatory Perspective

OCBC follows U.S. securities law, AML, and Singapore regulations for tokenised assets. Investor verification, transaction traceability, and automated compliance are built into the blockchain, proving that law and technology can coexist in digital finance.

World Events and Global Finance Trends

OCBC’s program aligns with global adoption of tokenized finance. Key trends include:

• Adoption of digital securities to reduce costs and accelerate settlements.
• Commercialization of blockchain within mainstream finance.
• Participation by banks and large investors in tokenised instruments, signaling scalability.

OCBC’s $1 billion program demonstrates practical blockchain application beyond experimental use cases.

Looking Forward

OCBC plans to expand the program with more tokenised CP and other digital debt instruments, potentially setting a regional benchmark. Possible applications include tokenised bonds, trade finance, and cross-border financing, enhancing efficiency and transparency.

Summary

OCBC is the first to offer a $1 billion digital U.S. CP programme using blockchain, complementing its $25 billion conventional program. J.P. Morgan Digital Debt Service serves as the sole dealer. Tokenisation enables electronic issuance, settlement, and trading, improving efficiency, transparency, and compliance. The first tokenized issuance occurred on August 20, 2025. This positions OCBC as a pioneer in Asia’s digital finance ecosystem.

Conclusion

OCBC’s digital CP programme is a landmark in corporate finance. The combination of blockchain technology with conventional banking allows efficient, secure, and transparent short-term funding. The initiative demonstrates strategic innovation and leadership, positioning OCBC as a digital finance leader in Asia, with potential to reshape corporate funding globally.

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