BondEvalue joins Sandbox Express to create blockchain based bond exchange
Singapore-based BondEvalue will enter the Monetary Authority of Singapore’s (MAS) Sandbox Express and launch a blockchain-based bond exchange. The platform will offer a unique proposition to reduce the minimum investment amount of bonds to US$1,000 via BondbloX*.
Predominantly traded over-the-counter makes bond prices opaque and the process inefficient. BondEvalue uses blockchain to trade bonds electronically, like stocks. By moving bond trading to an electronic exchange, prices become transparent and trade settlement becomes instantaneous. This is a huge improvement from the traditional process of a two-day trade settlement cycle.
The platform connects banks, wealth managers and robo-advisors across the world, allowing their customers (limited to accredited investors in Singapore) to trade BondbloX.
Rahul Banerjee, founder of BondEvalue said: “Today only about 50,000 people in Asia are able to afford wholesale bonds, due to the US$200,000 minimum investment. BondBloX will grow this number to over 25 million in the next 3-5 years. The bond market should not be restricted to just the affluent but rather be accessible to all, like equities.”
Sopnendu Mohanty, Chief FinTech Officer, MAS said, “The ability to gather early feedback from actual customers plays an important part in determining the success of innovation. Sandbox Express achieves this by providing a fast lane approval for innovations to be tested quickly in the market. We are delighted that it has enabled BondEvalue to jumpstart an innovative experiment to address real challenges in today’s bond market.”
BondEvalue’s bond exchange is built on Hyperledger Sawtooth – a modular platform for building, deploying and running distributed ledgers. Entry into Sandbox Express marks a significant step in real-life blockchain implementation to redefine international debt capital markets while being fully compliant with extant laws.” Linklaters is the legal advisor to BondEvalue.
*BondbloX: A fraction of a conventional US$200,000 bond wherein each BondbloX has a denomination of US$1,000.