More and more countries, particularly in Asia, seem to be joining the tokenization trend.
According to recent reports, the Philippines is the latest on the list.
The Philippine Bureau of the Treasury recently announced that it will issue 10 billion pesos (equivalent to $179 million) of one-year tokenized treasury bonds for the first time.
It made this decision after cancelling the usual auction scheduled for next week, on 20 November.
According to a report from Bloomberg, the Philippines' Bureau of Treasury has recently decided to issue tokenized treasury bonds.
The country's government made this decision in a bid to explore the benefits of Blockchain technology, and also to diversify its funding sources.
According to Bloomberg, the Philippine Bureau of Treasury will offer these tokenized bonds to banks and other institutional buyers with increments of 1 million pesos, for a minimum of 10 million pesos.
These bonds will be valid only for a year and will expire sometime next year in November.
Bloomberg also says that the Development Bank of the Philippines and the Land Bank of the Philippines will use an Ethereum-based blockchain platform developed by the Union Bank of the Philippines and the Philippine Digital Asset Exchange, to issue these bonds.
The blockchain platform developed by the Union Bank of the Philippines will also use smart contracts to automate the operation of these tokenized bonds.
The tokenization trend in Asian countries is starting to become more visible, as more governments opt for blockchain-based bonds, instead of traditional ones.
Other governments including Singapore, the UAE and even Hong Kong have made this move so far this year.
Earlier in the year, Hong Kong, via its Green Bond programme, also issued $100 million in tokenized green bonds.
However, instead of using an Ethereum-based blockchain protocol like the Philippines eventually did, Hong Kong chose to use Goldman Sachs' tokenization protocol to tokenize these green bonds and programmatically add a one-year validity period.
The Tel Aviv stock market also joined the trend recently and conducted a proof-of-concept for tokenizing currency and government bonds.
Singapore has also done the same, in collaboration with fintech giants like BNY Mellon, JP Morgan and others to test how feasible it is to tokenize not only bonds, but equities, real estate and funds, on a blockchain platform.
The United Arab Emirates, on the other hand, chose to go with HSBC for its own bond tokenization.
This growing trend among Asian governments shows that blockchain technology is gaining ground, and before long, We might see bond, real estate and cash tokenization become a global phenomenon.
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