Singapore's OCBC has become the first issuer globally to launch a US commercial paper ( USCP ) programme entirely powered by blockchain.

The US$1 billion digital USCP programme enables OCBC to secure near-instantaneous US dollar liquidity, thanks to tokenized securities and funds that settle directly on-chain.

Unlike traditional methods that rely on intermediaries and legacy infrastructure, this solution leverages blockchain for issuance, settlement, record-keeping and servicing, delivering end-to-end automation and transparency.

The debut issuance took place on August 20, involving six-month maturity notes subscribed to by an accredited institutional investor. The bank received the proceeds within minutes, a process that typically takes one to two business days under conventional clearing systems.

This new digital channel, the bank says, complements its long-standing US$25 billion traditional USCP programme launched in 2011 and comes at a pivotal moment when liquidity resilience is a strategic priority, given heightened macroeconomic uncertainty and geopolitical tensions.

The initiative is supported by J.P. Morgan’s Kinexys digital assets platform and its digital debt service application. The US bank also serves as sole dealer for the programme.

The digital notes received top-tier short-term credit ratings of P-1 from Moody’s and F1+ from Fitch.

The funds raised from this issuance, and all other funds raised under the US$1 billion digital USCP programme, will be used by OCBC for general funding purposes. 

“This is not a pilot, it’s commercialization in action,” says Kenneth Lai, the bank’s head of global markets. “We’re expanding our blockchain footprint from intraday repos to global short-term funding, driven by speed, security and operational agility. This move elevates the bank’s capital markets profile while future-proofing our access to US dollar liquidity.”

Scott Lucas, J.P. Morgan’s head of markets digital assets, adds: “OCBC’s execution highlights blockchain’s power to modernize financial markets.”