This week, the open-source tokenization platform dBond celebrated the successful tokenization of a Deutsche Bank bond on the EOS blockchain. EOS has long been touted as a superior tokenization protocol and the accomplishment is a milestone for the entire EOS camp.
News of the strategy emerged via a dBond medium post. Notably, the post explained the concept was a first in the marketplace. Interestingly, Deutsche Bank had nothing to do with the tokenization. the dBond develop team figured out how to tokenize the bond without the need for the bank's approval.
The EOS blockchain is the backbone bone of the entire project. In fact, the concept is possible only because the DUSD stable coin and the newly tokenized bonds both utilize EOS's 4th generation blockchain which features robust smart contract capabilities.
EOS made headlines just this week after developers released the Version 2.0 of the EOSIO protocol. The new protocol improves on the blockchain's already impressive smart contract programming capabilities. It’s precisely these capabilities that made EOS a wise choice for the bank to consider.
Additionally, EOS recently settled with the SEC to the tune of a $24 million dollar fine for their 2017 ICO in which the company raised $4.1 billion in funding. The SEC alleged that EOS illegally offered securities during the ICO. Now, EOS is fully in line with regulators. In this manner, the platform is now ready to step into the tokenized securities and bond markets.
How it Works
According to the post, an investor purchases a USD-denominated bond. At this point, the new bond deposits into an escrow account. Then, thebondsacc contract requests the creation of an equally valued DUSD nominated tokenized bond. This new tokenized bond is locked up in a thedeposbank account for the required waiting period before a new dBond is issued as DUSD collateral.
Tokenized bond issuance on the EOS blockchain is an important milestone for the firm. Currently, EOS ranks as the #8 cryptocurrency in terms of market cap on CoinMarketCap. The coin has a market cap of $2,659,051,489 (334,977 BTC) with a 24-hour trading volume of $1,673,947,931.
Deutsche Bank Looks Towards the Digital Economy
EOS continues to position its organization to play a pivotal role in the digitization of the economy. When you consider that the EU market is set for a huge expansion in the blockchain financial sectors, both EOS and dBonds is a step ahead of the competition. You can expect to see dBonds expand upon this concept in the coming weeks.