PV01 Issues First Digital Native Bond on Ethereum Blockchain under English Law
PV01 Makes History with First Digital Native Bond Issued on Ethereum Blockchain
In a groundbreaking move, PV01 has successfully issued the first digital native bond on the public Ethereum blockchain under English law. The $5M bond, denominated in USDC and backed by a US Treasury Bill, was purchased by a group of blue-chip stablecoin investors, including B2C2, Keyrock, and BlockTower Capital.
The bond, which earned a yield of 5.10%, was issued on April 8th and redeemed a week later. Represented by a transferable token that can also be used as collateral, the bond’s entire lifecycle, from issuance to redemption, took place on-chain without the need for a central security depository.
By leveraging Coinbase to convert USDC, the digital bond enables lightning-fast same-day investment in US treasuries, with settlement occurring on the blockchain in a matter of seconds, significantly faster than traditional bonds. This issuance marks the completion of PV01’s proof of concept, following their successful $9M fundraising last year to evolve the debt capital markets.
Industry leaders have praised PV01’s innovative approach to bond issuance and its potential impact on financial markets. Thomas Restout, CEO of B2C2, described PV01’s bonds as “a crucial innovation in financial plumbing,” highlighting the ability to fully change the ownership of bonds on-chain as an opportunity to use fast-moving and safe collateral to support trading activity with exchanges and counterparties.
Kevin de Patoul, CEO of Keyrock, emphasized the significance of the digital bond’s fusion of traditional bonds’ security and reliability with the immutability and transparency inherent in blockchain technology. He stated, “We are thrilled to collaborate with PV01 and honored to be among the pioneers in the tokenization of bonds. This initiative aligns seamlessly with Keyrock’s overarching mission to tokenize all forms of value, ushering in a new era of financial innovation.”
PV01’s commitment to developing a trusted institutional-grade platform that brings the fixed income market on-chain is reflected in both Bermuda’s leading reputation as the jurisdiction of choice for digital asset companies and the combined legal expertise of Hogan Lovells and Walkers Global. These legal firms played a crucial role in facilitating the first digital native bond issued on a public blockchain under English Law, ensuring the highest standards of legal compliance and regulatory oversight.
The successful issuance of PV01’s digital bond marks a significant step forward in the evolution of debt capital markets, demonstrating the immense potential of blockchain technology to transform traditional financial instruments. By combining the security and reliability of traditional bonds with the immutability and transparency of blockchain, PV01 has created a groundbreaking financial instrument that offers investors a new level of efficiency, accessibility, and liquidity.
