The repo, which is a form of short-term borrowing that involves one party selling a security to another for cash, involved borrowing tokenised Japanese yen against a JPY-denominated natively-issued digital bond. The borrowed tokenised JPY was also used to finance the purchase of the same bond.
The world’s first live repurchase transaction (repo) of a natively-issued digital bond has been executed on a public blockchain, according to a release by UBS Singapore on Nov 14.
This was conducted as part of the Monetary Authority of Singapore (MAS)’s Project Guardian, a government-industry partnership to test the feasibility of applications in asset tokenisation. The repo was carried out with UBS, SBI Digital Asset Holdings (SBI DAH) and DBS.
