One of the largest Philippine banks, UnionBank, uses blockchain to issue bonds for $18 million.
UnionBank has become the first financial institution in the country to use blockchain to issue securities. The bank launched a public offering of bonds in national currency. The bank told the Philippine Stock Exchange that the minimum bond issue will be 1 billion Philippine pesos ($18 million).
The first public offering began on May 24. The issue will take place on June 20, after listing on the Philippine Dealing Exchange (PDEx) – for trading on the fixed income market. The bonds will have a circulation period of one and a half years, and holders will be able to receive fixed coupons in the amount of 3.5% per annum.
The Bank became the first user of the Philippine Depository and Trust Corporation (PDTC) digital ledger and digital depository. The platform uses the blockchain to conduct transactions.
The bank now manages more than $15 billion in assets. Bank officials have repeatedly stressed that clients are very enthusiastic about the introduction of digital currencies, but investors and Philippine regulators need more knowledge about the new industry.
At the beginning of the year, UnionBank announced that it plans to offer services for trading and storing cryptocurrencies amid the rapid development of the industry. The bank is confident that if the cryptocurrency market stabilizes, then in five years investors will increase the volume of digital assets in their portfolios up to 3-5%.
