London Block Exchange (LBX) has partnered with Argento Access to launch the world’s first bitcoin-denominated bond. The bond settles in bitcoin, is priced in bitcoin, pays monthly coupons in bitcoin, redeems in bitcoin, and has no traditional ‘fiat’ currency exposure anywhere in the structure.
Argento Access is a Luxembourg registered securitization company. Since 2013, the firm has enabled asset managers to cost-effectively package their assets into easily purchasable investment notes.
About the Bitcoin Bond
The bond is available in a variety of duration, each of which has been allocated an ISIN security code by Clearstream. It is the first time a cryptocurrency product has ever been allocated such a code. The notes are exclusively traded via LBX and are custodied by an FCA regulated custodian in London. The register of noteholders is maintained on the blockchain. The durations are named to appeal to the digital asset community “FOMO”, “HODL”, “LAMBO”, and “MOON”. Capacity for each series is limited to 10,000 bitcoins.
Phil Millo, Argento’s Manager stated “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 said “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.”
At a Glance: Previously in April 2019, London Stock Exchange, one of the world’s oldest stock exchanges and second largest by volume operating in Europe (Euronext is first) founded in 1571 became the first to trade and issue blockchain based security tokens.