Luxembourg-based Argento, a securitization firm, joined forces with London Block Exchange (LBX) to issue the bitcoin-denominated bond, which is regulated under the United Kingdom’s regulator, the Financial Conduct Authority (FCA).
“We are thrilled to have structured and produced the world’s first institutional grade bitcoin-denominated financial product,” Argento manager Phil Millo commented.
“The large investment banks really dropped the ball on this one.”
The Argento-LBX bond represents a first in regulated cryptocurrency products, in that it contains no fiat exposure for investors. It is readily available via Bloomberg Terminal, and is the first crypto product to have its own ISIN code.
Various durations are available, Argento conspicuously naming them after crypto-specific phenomena such as ‘FOMO,’ ‘HODL’ and ‘MOON.’
HODLers, LBX says, form one of the bond’s major target markets.
“This is an excellent product for people who currently hold bitcoin and aren’t planning to sell over the next few years…,” CEO Benjamin Davies added.
“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.”
Previously, the governments of several developing nations had told the International Monetary Fund (IMF) that they were keen on issuing bonds tied to bitcoin.
The focus of the hearing between Facebook’s David Marcus and the Senate on the Libra cryptocurrency was trust—or the lack thereof.
A court in Hangzhou, China, upheld Bitcoin’s status as “virtual property.” The ruling reaffirms that Bitcoin is legal to own in China and indicates to holders that they will be protected by the country’s legal system in disputes.
Japanese cryptocurrency exchange Bitpoint was hacked last week when hackers stole 3.5 billion yen ($32 million) from the exchange’s hot wallet, of which 2.5 billion yen were customer funds.
Ripple is revealing more on its multi-million dollar plan to grow the digital assets ecosystem and bring distributed ledger technology to the masses.
U.S. president Donald Trump finally expressed his views on Bitcoin and cryptocurrency, and the POTUS is not a fan.