Philippine UnionBank has become the first financial institution in the country to use blockchain technology to issue bonds. UnionBank has launched an IPO of digital peso bonds.
The bank announced that the minimum issue size of the bonds will be PHP 1 billion (approximately $19 million).
The bonds will then be issued on June 20, 2022 and will also be listed on the Philippines Dealing and Exchange Corporate on that date. For trading on the PDEx Fixed Income Market.
The bonds will have a maturity of 1.5 years and holders will earn a flat rate of 3.5% per annum.
UnionBank noted that the move was made possible thanks to its partnership with the Philippines Depository and Trust Corporation. The PDTC platform uses blockchain technology for recording and custody.
It has always been one of the first to adopt technological innovations to empower its customers. It embraces the future of banking and is committed to becoming the Philippines’ leading digital asset bank to best serve the growing needs of Filipinos everywhere.
He named Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank as joint regulators and accountants in the transaction.
UBP pioneering digital currency adoption in Southeast Asia
UBP has long been hot towards digital currency. By 2018, the bank launched a stablecoin called UPX. In January, the bank also announced plans to launch digital currency trading and custody services, as reported by Bloomberg.
The bank’s assets are over $15 billion. The bank lauded the Philippines’ interest in the digital currency.
Market regulators have warned of the dangers of digital currencies. The Philippine Central Bank issued various warnings to banks and consumers. He also talked about possible risks