iSTOX, the Singapore-based security token platform, has enabled CGS-CMB Securities to issue blockchain-based tokens for commercial paper. There is no parallel conventional issuance.
The initial tranche of the three-month, 1% per annum notes was for S$10 million ($7.5 million), which was oversubscribed. However, over a one-year period with multiple tranches, it could issue up to S$150 million ($112 million).
Investors in the commercial paper had to be accredited individuals or corporates. Commercial paper is yet another avenue for iSTOX, which is tokenizing various investment types, including private equity, funds, real estate investment trusts, bonds and stocks. In Asia, short term funding is more typically through bank loans or even bond issuance. Whereas in the United States, according to the SEC, commercial paper is a trillion dollar sector.
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