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The most prominent crypto news related to the conventional world of finance that is being peddled all around centers on Bitcoin-denominated bond. Currently, there are two European companies which have come together to launch a financial product that is now being described as the first real Bitcoin Bond to ever exist in the globe.
All of this was confirmed in a press release made by the CEOs of both companies as no one wants fake news to spread around.
The companies responsible for this trending Bitcoin news are Argento, a securitization firm based in Luxembourg and LBX, London Block Exchange. This already issued Bitcoin-controlled bond will be regulated by the FCA, the Financial Conduct Authority.
The FCA is often referred to as the watchdog of the United Kingdom. Judging from the statement made by the manager of Argento, Phil Millo, the company is fascinated to have taken on the task to design and generate the globe’s first institutional Bitcoin-denominated monetary product.
The CEO of LBX, Benjamin Davies, has made several statements regarding the fact that this Bitcoin bond has been made for private individuals and firms who wish to hold Bitcoin(BTC)trade presently and do not plan to sell the cryptocurrency in the coming years.
His statement suggested that for the first time Bitcoin users now have an institutional grade way of actually investing in crypto without any exposure of their Bitcoin to the local fiat currency market space.
About The Bitcoin Bond
This Bitcoin bond signifies a first in regulated virtual currency products. This implies that it does not entail any exposure to fiat currency for its investors. Those interested can get it from the Bloomberg terminal as it is already available.
Furthermore, it is the first virtual currency product that actually has its very own International Securities Identification Number (ISIN) code. This bond settles everything in Bitcoin; it is priced in Bitcoin, monthly coupons will be paid in Bitcoin, and everything about it will be redeemed in Bitcoin also.
Its ISIN code was given by the securities services company Clearstream. Users can get the Bitcoin bond in diverse duration periods. These duration periods received names that significantly appeal to the computerized asset community and they include:
The capacity for every one of the series has been purposefully limited to only ten thousand Bitcoins. Its notes can be traded exclusively through LBX. Note holders are documented and maintained in its blockchain. Users should have in mind that this Bitcoin bond is primarily for those who will be investing and holding onto their Bitcoin bond for quite a long period.
Simply put, it is for long-term traders and not the short-term traders who may just want to test the waters.
The governments that are currently available in diverse developing nations have previously passed across a message to the IMF International Monetary Fund. This message has to do with the government being interested in issuing out bonds that are tied to cryptocurrency and more particularly to Bitcoin. It is like some crypto dreams have finally become a reality as both LBX and Argento have successfully merged to form a Bitcoin bond.