1. Startups

IDDB Bond Tokenization Project Approved by OJK to Enter Regulatory Sandbox

This asset tokenization project will expand access to government bond investments.

PT Sejahtera Bersama Nano (SBN) has officially made history by becoming the first token issuer in Indonesia to receive approval from the Financial Services Authority (OJK) for a government bond-based crypto asset tokenization project. This project, known as ID Digital Bonds (IDDB), is the first government bond tokenization to enter the sandbox OJK based on the approval letter No. S-514/IK.01/2024 on October 8, 2024. In fact IDDB has started to submit SBN since last August.

This tokenization is an innovative step to digitize bond instruments using technology blockchain. Through this project, bonds that were previously only accessible with large capital can now be broken down into crypto assets that can be traded widely through digital platforms. This opens up wider access for retail and institutional investors to invest in government bonds.

According to a report by the Boston Consulting Group (BCG), the market value of tokenized assets, including bonds, is projected to increase rapidly in the next few years. The report estimates that the global asset tokenization market will reach a value of over $16 trillion by 2030, covering bond, property, and equity tokenization. This tokenization technology facilitates access for investors, increases efficiency, transparency, and lowers transaction costs.

CEO of PT Sejahtera Bersama Nano Gumarus Dharmawan William stated, “This is a big step for Indonesia. OJK is the first financial regulator in Indonesia, even in Southeast Asia, to allow the implementation of a government bond tokenization project. Through our product, ID Digital Bonds, we are proud to be a pioneer in Indonesia with INDON34 bonds as the underlying asset.”

Previously, INDON34 bonds denominated in US dollars were only accessible to investors with a minimum purchase of $200 thousand (around Rp3,1 billion). With tokenization through IDDB, this access is expanded with a minimum purchase of $1.000 (around Rp15,5 million) per token, making IDDB more inclusive to various levels of society.

President Director Nanovest Billy Surya Jaya stated, “Tokenization innovation through IDDB is a strategic step to bring change to the bond market in Indonesia. We hope this product can encourage capital inflows into the country and support Indonesia's economic growth.”

Over the next 12 months, IDDB will go through a trial phase in sandbox OJK before receiving full regulation. The project involves collaboration between SBN as the token issuer, Nanovest as the Indonesian crypto exchange platform, STAR Asset Management as the investment manager partner, and Bank Sinarmas as the custodian.

Hanif Mantiq, Director of STAR Asset Management, added, “This tokenization innovation proves that crypto assets and government bonds can synergize harmoniously, offering safer and more affordable investment options. Crypto investors can now invest in government bonds with the same ease as crypto investments.”

This tokenization project not only aims to modernize the Indonesian capital market, but also increase financial inclusion by opening opportunities for more investors, both domestic and international, to participate in financial instruments in Indonesia.

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Disclosure: This article was produced with AI technology and supervision of the content writer

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