A number of companies are eyeing blockchain-backed bonds to
cut the time and costs associated with debt issuances. But the
technology could also ultimately remove the need for bank
intermediaries once it standardises, opening the market wide
open for smaller issuers.
France’s BNP Paribas, the National Bank of
Kazakhstan, the World Bank and German automobile group Daimler
have all recently announced initiatives and programmes to sell
The idea behind using a digital platform to issue and manage
bonds is to automate as much as possible their entire
lifecycle. The entire transaction — from the
origination, distribution, allocation and execution of the
issuance to the confirmation of repayment and of interest
payments — is to be carried out via blockchain
technology exclusively. The origination, settlement and trading
are carried out within a single function.
"The blockchain takes out...