Digital Bonds Ltd has introduced a zero coupon digital bond governed by English law, directly on the Ethereum public blockchain. The bond, denominated in USDC, is fully backed by US Treasury Bills, acquired through the proceeds of issuance and held under an English law governed security deed with Ankura Trust Company, LLC acting as Security Agent for the bondholders’ benefit.
PV01 Capital Markets Ltd, a licensed startup based in Bermuda, orchestrated the transaction, with support from the Hogan Lovells’ team. Sharon Lewis, Head of Financial Institutions Sector Industry Group, along with partner Bryony Widdup and senior associate Andrea Salsi, advised PV01 as Arranger and Tokenizer. Additionally, partner Kit Johnson and senior associate Axel Delaud provided counsel to Ankura Trust Company, LLC as Security Agent. PV01 specializes in innovative tokenization services, emphasizing the integration of blockchain technologies and traditional financial markets.
The issuance of the Digital Bond occurred on-chain in dematerialized form, allowing for seamless transferability among investors through bearer-like features, thereby eliminating the necessity for a central securities depository.
Furthermore, the Hogan Lovells Digital Assets and Blockchain Hub offers comprehensive resources on digital capital markets, including a webinar series discussing the digitalization of bonds in the UK, EU, and U.S.
This initiative by Digital Bonds Ltd, facilitated by PV01 Capital Markets Ltd and supported by legal expertise from Hogan Lovells, signifies a significant advancement in digital capital markets. By leveraging blockchain technology, the issuance of digital bonds presents a transformative opportunity for enhanced efficiency, transparency, and accessibility in the financial industry.