The name is Bond… digital bond

Various report and surveys have pointed to the potential of distributed ledger technology (DLT) to increase capital market efficiency. One of the most exciting applications of the technology is the digital corporate bond.

The advantages in terms of operations and costs for companies when obtaining finance through this method encompass the elimination of paper-based global certificates and central clearing, a notably shorter settlement period and the capacity to sell directly to investors without the necessity of a bank acting as an intermediary.

Digital bonds offer the prospect of rapid settlement and automation of post-trade administration. However, liquidity remains limited as investors ponder a fragmented market with multiple tokenisation platforms and an evolving regulatory framework.

In this session we explore some of the issuance limitations and ask what it might take to persuade more companies to issue digital bonds.