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World Bank Raises $33.8 Million via Tokenized Bonds

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World Bank Raises 33 million via Bond-i

The World Bank recently completed the second round of its blockchain-based crowdfunding campaign. This go-around, the firm secured $33.8 million from a variety of investors. The news showcases the rising involvement of major financial institutions in the space.

In a recent interview, the funding head at the World Bank, Andrea Dore discussed the monumental progress his team accomplished so far. He pointed out that the Bond-i is the first bond to live fully within a distributed ledger ecosystem (DLT).

Discussing the decision, Andrea Dore, he praised the innovative atmosphere surrounding the project. He also spoke on the experience gained by his company from the project. He ended by stressing the importance of creating sustainable development goals in the sector.

Bond-i

The Bond-i functions on a private blockchain built by CommBank’s Blockchain Centre for Excellence.  This corporate blockchain borrows much of its technical structure from the Ethereum blockchain. Ethereum-based (ERC) tokens are the most popular in the market.

World Bank via Modern Diplomacy

World Bank via Modern Diplomacy

The Bond-i is unique because it is issued, allocated, managed, and transferred completely on this private blockchain. Speaking on the use of this new technology, CommBank’s head of blockchain and artificial intelligence, Sophie Gilder discussed the advantages of this all-inclusive strategy.

Added Efficiency

Gilder explained that blockchain technology proved to be more transparent, efficient, and manageable than the current systems in use. She went on to describe how the company intends to develop this technology further and deliver additional functionality in the future.

A Team Effort

In order to make this advantageous strategy a reality, the World Bank sought out strategic partnerships. Notably, the Commonwealth Bank of Australia was the actual issuer of the bonds. Additionally, TD Securities and RBC Capital played important roles in the campaign.

World Bank STO Continues

In 2017, the first round of tokenized bonds netted the World Bank around $81 million USD in funding ($110 AUD).  Added to the latest campaign, the World Bank raised approximately $108 million USD to date.

These bonds issued on behalf of the Queensland Treasury Corporation (QRC). Importantly, this was the first time a crypto bond issuance took place with a government agency. The primary fundraising campaign went flawlessly. QTC was able to monitor bids, allocate funds, and settle transactions in real-time via the new system.

Australia is Pro-Crypto

There are a number of factors which made the campaign a success. Primarily, Australia has long been a supporter of blockchain technology. Back in 2016, the International Organization for Standardization chose the country to lead a multi-national team of researchers seeking to standardize blockchain protocol. Also, in July of this year, the country saw the opening of its first Blockchain Charity – New South Wales Charity.

It’s a Movement

The World Bank is sure to see more success in the future as the company is perfectly positioned to expand its blockchain implementation further. The combination of a pro-blockchain regulatory climate and a pioneering team is enough to give the World Bank a strong lead in the sector.

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David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

Bonds

Fundament And Bauwens to Tokenize Emporio Tower

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Fundament And Bauwens to Tokenize Emporio Tower

The tokenization firm Fundament upped the ante this week after the company announced that it successfully partnered with one of the most prestigious real estate developers in the country – Bauwens. The maneuver places Fundament at the forefront of the German tokenization sector. Also, it signals a shift from major real estate firms in the area over to a blockchain-based strategy.

Strategic Investor – Fundament

The real estate giant Bauwens is one of the largest development firms in operation across Germany. The firm currently manages billions in investment properties, most notably, the iconic Emporio Tower.

The Emporio Tower is one of the most recognizable buildings in Hamburg. The 98-meter high structure entered service back in 1964. Originally, the building served as the global headquarters for Deutsche Unilever before the firm relocated in 2009. Today the building is a tourist attraction and serves as a luxury hotel.

Fundament Partners

According to Fundament executives, negotiations started in May. At that time, Bauwens showed interest in the growing tokenization sector. Interestingly, the firm secured a 15 percent stake in Fundament back in September 2019.

An Industry First

Fundament was a prime investment for Bauwens after it became the first firm to gain approval from German regulators – BaFIN. The approval allows Fundament to issue tokenized real estate bonds in a compliant manner.

Fundament via Homepage

Fundament via Homepage

Managing director, Alexander Jacobi praised the strategic partnership. He took a moment to discuss the important milestone Fundament achieved. He ended his statement after calling Fundaments tokenized bond a “decisive breakthrough” in the market.

Fundament Corp

Fundament entered the market in 2017. The Berlin-based FinTech firm pioneered tokenization in the region. The company achieved numerous industry firsts since its BaFIN approval. Importantly, the company utilizes the Ethereum blockchain to issue security tokens.

IBO

Now, Fundament seeks to expand its platform’s capabilities. The firm announced plans to host a $280 million Initial Bond Offering (IBO). According to company documents, the real estate bond token sale will start on October 8.

The tokenized bonds represent shares in five large construction projects currently underway in the country. The project’s locations make them ideal investments. There are three properties located in Hamburg, one in Frankfurt, and one in the college city of Jen. Notably, Company officials stated that they may consider adding additional properties from Bauwens.

Speaking on the new developments, CEO, Thomas Ermel discussed the nuances of the new partnership. He explained that not all of Bauwens properties are a good fit for tokenization. His firm chose the properties that best suited the strategy.

Ermel also discussed Bauwen’s market positioning. He explained that the company has the type of reputation that can entice more investors to the project.

Bauwens Goes Hi-Tech

Bauwens already works with numerous tech firms in the industry with company officials explaining the platform’s interest in tokenizing portions of its portfolio via bonds. Now, Fundament and Bauwens are ready to take the German real estate sector to the next level with their latest venture.

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Blockchains

Deutsche Bank Bond Tokenized on EOS Blockchain -dBond

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Deutsche Bank Successfully Tokenizes Bond on EOS Blockchain

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.

EOS

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.

Deutsche Bank Bond Tokenized on EOS Blockchain -dBond

EOS via CoinMarketCap

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.

SEC Settlement

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.

Milestone

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.

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Bonds

FAT Brands turns to Cadence in $30M Bond Issuance

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FAT Brands turns to Cadence in $30M Bond Issuance

Bond Issuance

Investors hungry for profit need look no further than a recently announced bond issuance by FAT Brands restaurant chain, Fat Burger.

Made possible through a partnership with blockchain specialists, Cadence, Fat Burger is looking to tokenize and issue a $30 million bond.

This issuance will see investors afforded the opportunity to earn guaranteed returns on investment, as the bonds essentially represent a loan to Fat Burger.

While the intent of both Fat Burger and Cadence has been confirmed, the details and structuring of the event have not yet been divulged. This includes a variety of details such as repayment schedules, interest rates, terms, etc. What can be confirmed is that the digital issuance will take place on a public Ethereum blockchain, and will coincide with traditional paper-notes being issued as a ‘back-up’.

Commentary

Speaking with Forbes, the CEO of FAT Brands took the time to comment on this decision for a bond issuance.

Andy Wiederhorn, CEO of FAT Brands, states,

“FAT Brands is working with Cadence as the lead arranger to do a whole business securitization…Similar to other issuances arranged by Cadence, a digital asset will be created that is a digital reflection of ownership for every investor in structured notes.”

In his discussion with the news outlet, he continued by explaining the thought process for turning to Cadence and blockchain technologies.

“The digital asset serves as a digital reflection of ownership and provides a level of transparency into the cap table of each structured note…Cadence has already issued 16 different structured notes to date as of the end of August, and so it is likely that investors who have invested in prior Cadence offering will be investing in this offering as well…By issuing this digital asset, Cadence provides a level of transparency into the cap table that has never existed before.”

FatBurger

One of eight restaurant chains owned by FAT Brands, FatBurger operates with over 200 locations throughout the United States.

CEO, Andy Wiederhorn, currently oversees company operations.

Cadence

Founded in 2018, Cadence is a U.S. based company, operating out of New York City. The team behind the project has developed a platform targeting both institutional, and retail, investors. Their success over the past few years has notably resulted in the backing of industry giants such as Coinbase.

Company operations are overseen by Founder, Nelson Chu.

In Other News

The issuance of tokenized bonds is becoming a popular choice for a variety of companies. The following articles demonstrate various instances of big banks dipping their toes in the water, as their growing interest in the process becomes apparent.

Santander Completes Fully Digitized $20M Bond Settlement

World Bank Raises $33.8 Million via Tokenized Bonds

Societe Generale SFH turns to Ethereum for Issuance of Security Token

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