Digital bond issuance has yet to become mainstream, but there’s been a steady drip of issuances in Europe and Asia. But not so much stateside. Issuing a native digital bond on a blockchain can save considerable cost. Germany’s Cashlink estimates the savings to be up to 1.2% of the bond value. And they should know – their platform is one of the most heavily used in terms of the number of issuances.
That said, the high Cashlink savings figure applied to cross border issuances, with domestic bonds saving 0.52% depending on the bond’s duration.
While there haven’t been many (any?) digital bonds issued in the United States, there have been other digital securities. For example, in some cases, existing Treasury bonds have been tokenized for repo trading platforms operated by Broadridge and JP Morgan. But those are not native digital bonds.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
