DEAL: world’s first automated crypto-bond issuance

Author: Olly Jackson | Published: 7 Dec 2017

By Olly Jackson, EMEA reporter

The UK market has hosted the world’s first fully automated cryptocurrency-denominated bond issuance that was cleared, settled and registered on a public blockchain infrastructure. This could set a benchmark for future sales of digital money-based debt, and signals further transformation in the financial services space.

UK online homeware and interior decor business LuxDeco is the company behind the issuance, hosted by Nivaura, which developed the cloud-based service which enabled the issuance and the administration of a legally enforceable financial instrument.

Allen & Overy partner Phil Smith, who advised Nivaura, anticipates their unique legal mark-up language based contracts could be used for a wide range of transactions across the financial services sector, which could be hugely advantageous for lawyers.

"Reducing cost is a key commercial driver for the platform," he said. "The Nivaura platform’s functionality means reduced man hours spent by lawyers on manual tasks,...