OCBC is embracing blockchain technology through a newly launched US$1 billion digital US commercial paper (USCP) initiative. This cutting-edge program empowers the bank to secure short-term US dollar funding with remarkable speed, often in a matter of minutes.
This strategic decision underscores OCBC’s dedication to enhancing its financial stability amidst increasing uncertainty in global markets, driven by geopolitical and macroeconomic factors.
The new blockchain-based USCP program complements OCBC’s existing conventional US$25 billion USCP program, which was established in August 2011.
OCBC is leading the way in the financial industry by managing the entire lifecycle of its USCP on the blockchain, including issuance, settlement, record-keeping, and servicing. This makes them the first USCP issuer globally to utilize blockchain across all aspects of the securities’ operation.
Tokenized securities and funds residing on the blockchain facilitate near-instantaneous settlements, significantly accelerating transaction times.
The blockchain setup provides all involved parties with synchronized, real-time, and verifiable records, diminishing the reliance on conventional infrastructure and intermediaries.
J.P. Morgan’s Digital Debt Service application, developed on its Kinexys Digital Assets platform (a multi-asset tokenization platform), is the technology behind the program. J.P. Morgan also serves as the sole dealer for this initiative.
The inaugural tokenized USCP issuance under this program took place on August 20, 2025.
OCBC issued six-month notes to a qualified institutional investor and promptly received funds within minutes of the transaction. These funds will be used for general corporate funding purposes.
The digital USCP program holds prime short-term credit ratings: P-1 from Moody’s and F1+ from Fitch, reflecting the highest possible ratings for such financial instruments.
OCBC highlights that this program opens up a fresh avenue to access the US$1.4 trillion USCP market, enabling rapid US dollar funding.
This launch follows OCBC’s 2024 adoption of J.P. Morgan’s Digital Financing application for reverse repo and repo transactions, representing part of a broader strategy to improve liquidity management.
Kenneth Lai, OCBC’s Head of Global Markets, stated,
“Singapore’s blockchain environment is rapidly evolving, and asset tokenization is gaining significant traction. Our primary focus is now on commercial applications. We have previously leveraged blockchain for intraday repo and reverse repo transactions – capabilities we added last year – and we are now expanding into the USCP market to bolster liquidity and resilience.
OCBC is well-versed in this domain, and our new digital USCP program is designed to enhance investor engagement and elevate our global capital markets standing. The speed and transparency of this solution reinforce our confidence in blockchain’s transformative potential for capital markets.”
Scott Lucas, Head of Markets Digital Assets at J.P. Morgan, commented,
“J.P Morgan’s Digital Debt Service offers issuers and investors an additional method for participating in the USCP market, and OCBC’s issuance clearly showcases this capability in practice.
Our collaboration with OCBC, aimed at improving both their access to the US market and advancing their digital strategy, aligns with our dedication to delivering innovative liquidity solutions.”
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