Tokenization of Belarussian Government Bonds Offered by Currency.com Exchange in First Ever Move
It has just been a week since Currency.com, a Belarus-based tokenized exchange announced the launch of its main site. The company claims that its platform will be the first one of this kind in the world and that it will allow the investors to trade and invest in tokenized financial instruments using it. Along with the main version of the desktop app, an Android and an iOS version of the software was launched.
Equities, bonds, indices, and commodities will all be tokenized on the platform. This way, you can buy several tokens which will be able to mirror some important shares like Nasdaq or Apple. You can get all the benefits of investing in these companies without needing to buy the actual shares. The company is also interested in tokenizing the government bonds of Belarus, where the exchange will be based.
In the first of its kind model, Currency.com will issue a tokenized version of Belarusian government bonds and plans to include additional tokenized government and corporate bonds over time. The investors willing to purchase these government bonds will make the order from the platform who will then issue a like-for-like token representing ownership rights to the underlying bond, with the bond transferred to Currency.com by verified and licensed third-party institutional intermediaries with direct access to the government issue.
Their co-founder, Viktor Prokopenya said:
“Government and corporate bonds are an elite asset class that cryptocurrency investors have historically been excluded from benefitting, but Currency.com changes that. This is an important moment in history because blockchain technology is, once again, being used to disrupt and democratize global financial markets – and Currency.com is spearheading this paradigm shift. All this was made possible by the progressive Decree No. 8 ‘On the Development of a Digital Economy’ that was ratified in Belarus in 2018, affirming the country’s commitment to playing a big role in the next chapter of the technological revolution.”
Notably, the exchange is the first blockchain business to be authorized by the High Technology Park (HTP) in Belarus following the adoption of Decree No. 8. They will initially offer access to issue 252 of the Belarus Currency and Stock Exchange with a 4.2% per annum yield, with more tokenized bonds being added over time. The tokens will be denominated in USD and priced at $1,000, which corresponds to the cost of the underlying bond, but users will also have the option to buy fractional tokens.