According to a press release dated 3rd July 2019, two European entities have entered into a partnership to launch what they refer to as the first ever genuine Bitcoin Bond in the world. The two companies that collaborated to issue bonds denominated in bitcoin are Argento and London Block Exchange or LBX. While the former is a securitization company based in Luxembourg, the latter is the first dedicated digital currency exchange of the United Kingdom.
What’s more interesting is the fact that the bond now comes under the regulation of the FCA, short for Financial Conduct Authority, which is the UK’s financial regulatory body that operates independently from the government.
Phil Millo, the manager of Argento, came forward to share his thoughts on the collaboration. He stated that they were excited to have constructed as well as produced the 1st institutional grade financial product in the world that is BTC-denominated. Adding further, he was quoted as saying,
The large investment banks really dropped the ball on this one.
This bond, developed jointly by Argento and LBX, is completely unique given the fact that it is the very first crypto financial product which is regulated and holds its individual ISIN code. Moreover, it offers zero fiat exposure to investors. The investors can avail the bond on the Bloomberg Terminal. The bond is majorly targeted to the long-term crypto holders.
The product, as per the Chief Executive Officer Benjamin Davies, is excellent for people currently holding BTC with having no plans to sell their holdings in the next couple of years. He also said that it will be the first for people as well who now would be able to grow their wallets in the institutional grade manner without having to expose their BTC to the traditional currency market swings.