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London Block Exchange and Argento Access to Launch World’s First Bitcoin-Denominated Bond
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Argento Access and the London Block Exchange (LBX) have announced their intention to issue the world’s first bitcoin-denominated bond. The bond would be settled entirely in bitcoin.
In order for Bitcoin to be accepted as a currency, there must be financial vehicles pegged to it. Now, a collaboration is bringing bitcoin-denominated bonds to the market. Argento Access and LBX are teaming up to issue a bitcoin-denominated bond.
The bond will be entirely priced in bitcoin. Its monthly coupons will also be paid out in bitcoin with no fiat exposure whatsoever. It is the first cryptocurrency product to receive an ISIN security code, issued by Clearstream.
The bonds will be traded on LBX and all custody will be handled by an FCA-regulated custodian based in London. Investors can purchase multiple durations of the bond which are aptly named to appeal to the cryptocurrency community: “FOMO,” HODL,” “LAMBO,” and “MOON.”
Argento’s Manager Phil Millo spoke positively of the developments, telling reporters:
“We are thrilled to have structured and produced the world’s first institutional grade bitcoin-denominated financial product. The large investment banks really dropped the ball on this one.”
Benjamin Dives, CEO of LBX, echoed similar positive sentiments.
“This is an excellent product for people who currently hold bitcoin and aren’t planning to sell over the next few years — the so-called ‘HODLers’. Now, for the first time, they have an institutional grade way of making their wallets grow without exposing their bitcoin to the swings of the traditional ‘fiat’ currency markets.”
In December 2018, LBX issued the world’s first GBP-backed stablecoin. Now, it is trying to once again be the world’s first to issue a bitcoin-denominated bond.
Do you believe Bitcoin needs to be tied to traditional financial vehicles like bonds to be more accepted by mainstream investors? Let us know your thoughts below.
Image courtesy of Techzim.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
