It’s described as “the world’s first”.
Currency.com issues tokens corresponding to government bonds of Belarus. Each issued token is backed with a bond purchased by Currency.com on the Belarusian Currency and Stock Exchange, the company said.
One thousand tokenised securities will be made available to investors, both private and institutional. Although the securities are going to be available globally, the U.S. and FATF-listed countries are excluded, TechCrunch writes.
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The initial yield on a bond is 4.2% per annum. One token is valued at $1,000, which corresponds to the value of one government bond.
Trading will be possible using fiat, bitcoin or ethereum. While at the moment only Belarusian government bonds are available, the platform is planning to add other government and corporate bonds.
“The arrival of tokenized securities will completely change how investors can use their cryptocurrencies,” said Currency.com’s CEO Ivan Gowan. “Linking crypto to the price of stocks and shares provides a tangible way for holders of Bitcoin and Ethereum to access traditional financial markets.”
Belarus became the first country with tokenized government bonds. Experts say that the project on the tokenization of Belarusian government bonds is in line with the strategy for the transformation and active innovative development of the local stock market to match international trends held by the Ministry of Finance.