On Friday U.S. startup said Alphaledger recorded three U.S. municipal bond issuances on its permissioned blockchain. However, for now it is parallel recordkeeping.
The key benefits of using blockchain are improved transparency and lower costs. Distributed ledger is being used for a wide range of bond issuances and digital assets, often because the efficiency gains make smaller issuances more practical. In the United States, the vast majority of bond issuances are in the sub $50 million category.
According to SIFMA, in 2021 there were 13,000 muni bonds issued worth $482 billion. When it comes to U.S. fixed income, the value of muni bonds outstanding is the fourth largest, after Treasuries, mortgage-related and corporate bonds.
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