September 01, 2025
By Anjali Kochhar
Imagine raising a billion dollars in minutes instead of days, with every detail recorded transparently on the blockchain. That is the groundbreaking reality unfolding in Singapore.
OCBC, the city-state’s second-largest bank, has launched a $1 billion digital U.S. commercial paper (USCP) programme, an ambitious move that blends traditional finance with blockchain innovation.
Here’s how it works: the entire lifecycle of the commercial paper—issuance, settlement, record-keeping, and servicing—is conducted on-chain. That means funds flow almost instantly, processes are streamlined, and every participant sees the same real-time data, enhancing trust through immutable transparency.
This digital initiative complements OCBC’s existing $25 billion conventional USCP programme, which has been in place since 2011. Now, with blockchain, OCBC is unlocking near-instant U.S. dollar funding, offering a nimble alternative amid uncertain macroeconomic conditions.
The bank’s first tokenized issuance under the new programme took place in August. In a striking display of efficiency, OCBC received payment within minutes of the transaction, a stark contrast to traditional settlement timelines.
J.P. Morgan’s Digital Debt Service, built on the Kinexys tokenisation platform, is the sole dealer managing this innovation. Despite using DLT, the tokenized instruments secured top-tier short-term credit ratings P-1 from Moody’s and F1+ from Fitch, highlighting strong market confidence in their creditworthiness.
OCBC positions this move as part of Singapore’s fast-advancing blockchain ecosystem, where asset tokenisation is making real strides toward commercial viability. Kenneth Lai, OCBC’s head of global markets, emphasised that the speed and clarity of this on-chain solution reinforce the transformative power of blockchain in capital markets.
Analysts see OCBC as the first global issuer to deploy blockchain across the full spectrum of commercial paper workflows. This model reduces reliance on traditional infrastructure, cuts out intermediaries, and addresses longstanding inefficiencies in short-term funding.
In a larger context, OCBC’s initiative exemplifies how distributed ledger technology is maturing, not just in pilot transactions but in real-world applications that matter.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
