CGS-CMB Securities has been able to issue blockchain-based tokens for commercial paper thanks to iSTOX, a Singapore-based security token network. There is no traditional issuance in parallel.

The three-month, 1% per annum notes were oversubscribed in the first tranche for S$10 million ($7.5 million). It could, however, issue up to S$150 million ($112 million) in multiple tranches over a one-year term.

The commercial paper’s investors had to be certified individuals or corporations. iSTOX is tokenizing different investment forms, including private equity, funds, real estate investment trusts, shares, and stocks, and commercial paper is yet another avenue for the company.

Short-term financing is more commonly obtained in Asia by bank loans or even bond issuance. Commercial paper is a trillion-dollar industry in the United States, according to the Securities and Exchange Commission.

One of iSTOX’s goals is to use tokenization to fractionalize investments. Another option is to use blockchain to automate the issuance process, which includes registering transactions and ownership and controlling corporate activities such as paying interest and dividends.

The transaction is completed instantly. The business also offers a secondary market, which is currently unavailable to the general public due to the platform’s use of a proprietary Ethereum blockchain.

The issuance process took half the time of a traditional one, according to CGS-CIMB.

“Through this partnership, we are excited to see firsthand what digital assets and exchanges will hold for us as a broker in the future,” Carol Fong, CGS-group CIMB’s CEO, said. “Digital issuances are likely to rise in popularity and become a valuable alternative to conventional capital-raising methods.”

China Galaxy Securities and Malaysia’s CIMB group own the issuer, which provides investment and wealth management services. Mak Lye Mun, the former CEO of CIMB Bank’s Singapore division, is a member of the iSTOX listing committee.

This isn’t the first time a blockchain commercial paper has been published. Zheshang Bank of China has had problems, and Euroclear has collaborated on several ventures, including one with the European Investment Bank and another with Rabobank.

Meanwhile, iSTOX is undergoing a rebranding as ADDX and boasts an impressive investor roster.

It just received a $50 million Series A funding round.