What is Bond and Bond trading?
Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is a fixed income investment in which an investor loans money. Bond trading is one way of making a profit from fluctuations in the value of corporate or government bonds. Many view it as an essential part of a diversified trading portfolio, alongside stocks and cash.
Bonds can be bought and sold in the “secondary market” after they are issued. While some bonds are traded publicly through exchanges, most trade over-the-counter between large broker-dealers acting on their clients’ or their own behalf.
BondEvalue is a Singapore based Fintech company that emphasis on Asian bond markets. Dissimilar to equities which have already been digitally disrupted, bonds have remained unchanged for decades, with private bank clients unable to access live prices.
BondEvalue has been approved as a Recognized Market Operator(RMO) by the Monetary Authority of Singapore(MAS). It employs BondbloX Bond Exchange(BBE), which is a blockchain-based bond exchange that intends to bring trading a wide range of fixed income securities to the mass market across the country.
BondEvalue bureaucratically inaugurated from the MAS regulatory of Sandbox on 1st October 2020. It means that it has victoriously culminated proof of technology and business model. It is now no longer bound by restrictions such as limits on trading volume and disclosures specific to the sandbox model. A sandbox is an administrative construct that provides fintech players with a faster option to test innovative financial products and services in the market under regulatory surveillance.
Bond Trade Platform – A Dream Comes True
“The dream to enable every citizen to buy bonds from a mobile phone where the way we order food. One rupee One bond”
--- Rahul Banerjee, Founder, and CEO of BondEvalue
Blockchain Technology Used in Bond Trade Platform
BondEvalue developed by Indian origin Entrepreneurs, targeting to launch with blockchain platform in the New year to precipitate investment in bonds by individuals and the common man. This is the World’s first platform using Blockchain-based bond Exchange.
This blockchain technology makes trading highly transparent and more cost-effective. Settlement on BBX is said to be on a T+0 basis that is within seconds instead of the normal two-day settlement cycle, thereby reducing counterparty settlement risks for investors.
Bond Trading - a platform for everyone
BBX allows the trading of a smaller size of bonds from US$1000, this is dissimilar to typical bond trades of at least US$200,000 in other platforms. So this leads to a better approach and better strategy opportunities for a market that is usually accessible to wealthy investors only. There are many previous attempts by regulators and market participants to ‘democratize’ bond investing but BondEvalue made it happen largely because of three factors.
●Advances in technology
●The Singapore regulator approval
●The experience and expertise of this team in BondEvalue
The Launch of BondEvalue
BondEvalue’s Initial Launch Partner UOB Kay Hian, part of the UOB Group and one of Asia’s largest brokerages, and its first member, multi-family office Taurus Wealth Advisors, will ramp up to bring more investors to the platform. BBX is integrated with Northern Trust as the Designated Custodian and works closely with external counsel Linklaters to bring BondbloX alive. Because of this technology, it's easy to invest in bonds, as the Bonds are very well-liked by individuals in different countries like the US, Japan, and Singapore.
Finally, BondEvalue with Blockchain-platform comes to India in this New year by planning to launch with two leading banks. The vision of extending bond trading from wall street to the main street is becoming a reality now.
Image Source: Economic Times