The world is witnessing the first institutional grade Bitcoin bond. Two European companies Argento and London Block Exchange (LBX) partnered in producing the world’s first Bitcoin denominated bond, with zero fiat in the instrument.
Argento and London Block Exchange claim that this is the first regulated, exclusively Bitcoin bond ever with an ISIN (International Securities Identification Number) code with zero fiat exposure. The bond is regulated by the United Kingdom’s Financial Conduct Authority (FCA), and is the first regulated Bitcoin financial product with zero-fiat exposure.
This will really allow investors to hedge with Bitcoin without having to take the responsibility of holding the Bitcoin in their own cold storage.
There are other regulated cryptocurrency related products around the world, but none have come to fruition in the United States (although recent news on LedgerX has been approved for physically settled Bitcoin futures).
The large investment banks really dropped the ball on this oneWilliam Suberg, Coin Telegraph, World’s First Zero-Fiat ‘Bitcoin Bond’ Now Available on Bloomberg Terminal.
This provides an excellent investment opportunity for individuals who are holding Bitcoin and who are not planning on selling it anytime soon (your typical HODLers). Bond term lengths are cleverly denoted in crypto related acronyms: FOMO, HODL and MOON.
What is most interesting that truly underscores how significant the pure Bitcoin issued bonds are is that in April 2019 there were a number of developing nations that expressed real interest in issuing bonds tied to Bitcoin to help their struggling economies. This includes Afghanistan, Tunisia and Uzebekistan.
Bitcoin bonds will help to establish the reach of Bitcoin and cryptocurrency, expand their use and actually function in society (real adoption). Should Bitcoin bonds create opportunities for developing nations Bitcoin can do significant good in the world.
- Unique Zero-First ‘Bitcoin Bond’ Debuts on Bloomberg Terminal
- World’s First Zero-Fiat ‘Bitcoin Bond’ Now Available on Bloomberg Terminal
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