Blockchain is a technology that ensures transparency.
The move should pave way for many more investors buying or selling bonds at a faster pace with transparency, the company said.
“We believe BondbloX will be an industry game changer,” said Rahul Banerjee, founder and CEO at BondEvalue. We have seen millions of people, forced by Covid-19 lockdowns, going online in the last six months.”
“Our vision is to have over 25 million people in Asia invest in bonds in the next five years from 500,000 individuals currently,” he said.
BondEvalue is aiming the so-called “HENRYS” or ‘high-earners not rich yet’. The exchange will, for a start, list 100 most liquid bonds out of the eight million or so bonds issued around the world.
The speed to market was made possible because of the Monetary Authority of Singapore (MAS)’s Sandbox Express, which provided BondEvalue with a faster option for it to test its innovation, it said in a release.
In Asia and Europe, bond trading is traditionally the preserve of affluent individuals, institutions and corporations as they are typically traded in unit size US$200,000 in the secondary market. Trading is also carried out over the counter (by phone) making for an opaque process and pricing.
BondEvalue already executed the first trade, which was between a Singapore citizen and a buyer who is a Singapore permanent resident.
The transaction was for US$8,000 of BondbloX representing the underlying Olam 4.375% bond maturing 2023, executed through Taurus Wealth Advisors, the first member of BBX.