In a groundbreaking move, the Philippines Bureau of the Treasury has announced plans to issue 10 billion pesos ($179 million) in one-year tokenized treasury bonds, marking the country’s first foray into digital asset-backed financial instruments. The decision comes after the cancellation of a traditional auction scheduled for November 20.
The tokenized bonds will be offered to institutional buyers, with a minimum denomination of 10 million pesos and increments of 1 million pesos. The bonds, valid for one year, will mature in November 2024, and the final interest rate will be revealed on the issuance date, as reported by Bloomberg. State-owned entities, the Development Bank of the Philippines and the Land Bank of the Philippines, will issue the bonds.
Deputy Treasurer Erwin Sta indicated that the government is open to further exploration of tokenized real-world assets and bonds, stating that they will “continue to study the technology and test how far we can take it.”
This move aligns with a broader trend across Asia, where governments are increasingly turning to tokenized bonds. Hong Kong issued $100 million in tokenized green bonds in February, utilizing Goldman Sachs’ tokenization protocol. Singapore, in collaboration with JPMorgan, DBS Bank, BNY Mellon, and investment firm Apollo, has initiated pilots for tokenizing real-world assets. The United Arab Emirates has also entered the space, partnering with HSBC for the tokenization of bonds.
The growing popularity of blockchain-based asset tokenization is not limited to Asia. Israel’s Tel Aviv stock exchange recently completed a proof-of-concept for tokenizing fiat and government bonds, showcasing the global momentum behind this transformative financial technology. Financial giants like JPMorgan and HSBC are among those driving interest in the sector, further underlining the significance of this emerging trend in the financial landscape.