Philippine Treasury’s historic move: Tokenized bonds upsized to P15 billion amid overwhelming demand

The Bureau of the Treasury (BTr) has successfully launched the country’s inaugural Tokenized Treasury Bonds (TTBs), a groundbreaking move that saw the initial issue size of P10 billion upsized to P15 billion due to robust demand from qualified institutional investors.

The subscription book reached P31.426 billion, surpassing the target offer by over three times.

Despite the non-tradability of the TTBs, the yield of 6.5 percent aligns with prevailing one-year secondary market rates.

Finance Secretary Benjamin E. Diokno highlighted the bond tokenization program’s alignment with the government’s long-term vision for a financially inclusive domestic capital market.

By streamlining settlement procedures and minimizing friction costs, the initiative aims to democratize investment and empower small investors.

BTr’s move to tokenize treasury bonds is part of a broader digital transformation effort and capital market development supported by the Bangko Sentral ng Pilipinas (BSP).

BSP Governor Eli M. Remolona, Jr. emphasized the goal of expanding investment options, enabling more Filipinos to grow their money through fixed-income investments and contribute directly to economic growth.