Currency.com Launches Tokenized Government Bonds
Currency.com, a blockchain-based platform that claims to be the world’s first regulated tokenized securities exchange, announced the launch of the crypto version of the Belarusian government bonds and interested investors can now purchase the financial instrument with bitcoin (BTC), ether (ETH) and the fiat standard, according to Fintech Finance report on May 7, 2019.
Bonds on the Blockchain
In a bid to make life easier for cryptocurrency hodlers by enabling them to hedge and diversify their investment portfolios, Currency.com has created a tokenized version of the Belarusian government bond which could be purchased with either fiat money, bitcoin or ether.
Per the firm, investors interested in purchasing the low-risk investment vehicle can place their orders on the site and they will receive a like-for-like token that stands at 1:1 with the underlying government bond purchased.
Specifically, Currency.com has hinted that the bonds are transferred to it by verified institutional intermediaries who have direct access to the government-backed financial instruments.
252 Belarus Bonds on Offer
Currency.com says it plans to issue 252 of the Belarus Currency and Stock Exchange in the form of tokens denominated in USD and priced at $1,000 per bond, with a 4.2 percent yield per year.
Also, investors who can’t afford to purchase a full token, have the option to buy the bonds in fractions and interest payments, as well as the initial amount invested, will be paid to them by Currency.com in either bitcoin, ether or USD.
However, investors holding a tokenized bond can also request for the transfer of the physical bond at any time, if they so desire.
Participants have the option to reinvest their profits into more bonds or other financial instruments on the platform.
Commenting on the matter, Viktor Prokopenya, founder and CEO of VP Capital and co-founder of Currency.com reiterated that the new product bridges the wide gap between cryptos and traditional financial instruments and the successful launch of this innovative tokenized assets has once again demonstrated that blockchain technology has all it takes to revolutionize the world of finance.
In his words:
“Government and corporate bonds are an elite asset class that crypto investors historically been excluded from benefitting, but Currency.com has turned the game on its head. This is a crucial moment in history because DLT is once again being used to democratise global financial markets.”
Interestingly, the team has stated that the new initiative has been made possible by Belarus’ liberal stance towards blockchain technology and cryptos, as demonstrated by the nation’s implementation of the Decree No.8, which aims to amenably regulate digital assets and blockchain-based businesses.