SGX's new bond issuance platform to shorten settlement to 2 days

The block-chain enabled platform is an SGX-Group-Temasek digital asset venture.

SGX CDP has made available a blockchain-enabled bond issuance platform by Marketnode to market participants.

Borne from an SGX Group-Temasek digital asset venture, Marketnode allows debt issuers to shorten settlement time for new-issue bond offerings to two days.

Marketnode's issuance platform connects debt issues into SGX CDP, and fully eliminates the paper trail with a 60% reduction in settlement time for issuers using the platform.

It is partnered with OCBC Bank, which acted as the sole-dealer of the its first transaction on the platform: a US$100m Euro Commercial Paper on its M Marketnode's direct-to-depository platform.

"This latest automation and digitalisation across the entire bond lifecycle from issuance, clearing, and settlement to asset servicing is a culmination of efforts and alignment of strategic direction from all involved parties to modernise existing processes. Asia has progressed significantly in its digital securities journey since SGX Group’s announcement of its digital bond pilot two years ago," said Kenneth Lai, Head of Global Treasury for OCBC Group in a press statement.