SGX CDP sets up Marketnode’s platform for faster debt issuance

SGX building signage in SingaporeSGX building signage in Singapore

SGX CDP is making Marketnode, a blockchain bond issuance platform, available to market participants, in a move which can shorten settlement time for new-issue bond offerings to two days, Singapore Exchange (SGX) said in a filing Wednesday.

The issuance platform from Marketnode, which is a digital asset venture from SGX and Singapore state-owned investment company Temasek Holdings, helps to digitize the manual processes for bond issuance and eliminates the paper trail, allowing settlement time to fall to two days from five previously, the filing said.

OCBC Bank‘s US$100 million euro commercial paper issuance is the first transaction to use the “direct to depositary” platform, the filing said.

Lee Beng Hong, head of fixed income, currencies and commodities at SGX Group, said the launch of Marketnode’s platform was an important part of the exchange’s move to build a fully digitalized fixed-income market infrastructure.

“The digitalisation of OCBC Bank’s bond issuance can act as a blueprint for us to operate Asia’s first digital bond infrastructure utility within a regulated securities depository, further strengthening Singapore’s position as a fixed income hub with one-stop digital issuance for international issuers,” Lee said in the statement.