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The tokenized bonds, totaling 10 billion pesos, will be made available to institutional buyers, with a minimum denomination of 10 million pesos and incremental increments of 1 million pesos. The one-year bonds, maturing in November 2024, will reveal the final interest rate on the issuance date, as reported by Bloomberg. The issuance will be facilitated by the state-owned Development Bank of the Philippines and the Land Bank of the Philippines.
Deputy Treasurer Erwin Sta affirmed the government's commitment to studying the technology and testing its potential for continuous use in tokenizing real-world assets and bonds. This move by the Philippines aligns with a broader trend in Asia, where governments are increasingly exploring the tokenized bond market. Earlier this year, Hong Kong issued $100 million in tokenized green bonds, utilizing Goldman Sachs' tokenization protocol.
Singapore has also embarked on a series of pilots in collaboration with JPMorgan, DBS Bank, BNY Mellon, and investment firm Apollo to tokenize real-world assets. The United Arab Emirates joined forces with HSBC to carry out the tokenization of bonds, contributing to the global momentum in leveraging blockchain for real-world asset tokenization.
This initiative by the Philippines marks a significant step in the adoption of blockchain-based technologies in the financial sector, mirroring the growing interest and involvement of major financial institutions such as JP Morgan and HSBC in the realm of real-world asset tokenization.
