The Bureau of Treasury (BTr) of the Philippines has officially launched a bond buying app, the first in Asia to offer retail treasury bonds leveraging on blockchain technology. Bonds.PH aims to provide easy investment options to the unbanked population of the country which remains at more than 70% to date.
Starting 16 July 2020, BTr is auctioning an initial PHP 30 billion (USD 609 million) in five-year retail treasury bonds to national citizens who can easily invest for a minimum of PHP 5,000 (USD 100) to a maximum purchase of PHP 500,000 (USD 10,100) per transaction. App users will be able to make instant payments using internet payment services such as InstaPay, GCash and Paymaya and through internet banking or over-the-counter payment via UnionBank, China Bank, Development Bank of the Philippines, Landbank, Overseas Filipino Bank, and through a dealer which is the First Metro Securities and Brokerage Corporation.
According to the app developer, UBX, the fintech arm of Union Bank of the Philippines, Bonds.PH is blockchain-enabled and transactions are recorded in a DLT-based registry in addition to the existing NROSS system. DLT enables immutable and tamper-proof record-keeping as it is recorded on the blockchain. The BTr wanted to implement the app to determine if leveraging DLT makes retail treasury bond distribution to the unbanked feasible, secure and economically viable.
The bonds will be offered until August 7, 2020 with an annual fixed interest of 2.625% payable every quarter of the year and will be cashed-in directly to the investor’s e-wallet in the app.
(Source: cointelegraph.com, TokenPost, Inquirer)