B2C2, Keyrock and BlockTower Capital purchase a $5M bond denominated in USDC and issued under Bermuda’s Digital Asset Business Act.
PV01 (www.pv0.one) announces the first sale of a digital native bond on the public Ethereum blockchain under English law, the gold standard of the global bond market.
Issued on April 8th and successfully redeemed a week later, the bond was backed by a US Treasury Bill and earned a yield of 5.10%. Represented by a transferable token, the bond can also be used as collateral. Using Coinbase to convert USDC, it enables lightning-fast same-day investment in US treasuries. Settled on the blockchain, it moves in seconds, much faster than traditional bonds.
After raising $9M last year to evolve the debt capital markets, PV01 has completed their proof of concept by successfully structuring and leading a $5M digital issuance out of a dedicated vehicle, with investors including B2C2, Keyrock and BlockTower. The proceeds were used to purchase a US Treasury Bill and exchanged for a corresponding ERC-20 bond token, backed one-for-one by the government bond. The entire lifecycle of this digitally native asset took place on chain from issuance to settlement to trading to transfer to redemption, without the need for a central security depository. This completes the first step in PV01’s mission of developing the first-of-its-kind on-chain debt market.
“PV01’s bonds represent a crucial innovation in financial plumbing,” said Thomas Restout, CEO of B2C2. “The ability to fully change the ownership of bonds on-chain is an opportunity to use fast-moving and safe collateral to support trading activity with exchanges and counterparties.”
“The fusion of the security and reliability of traditional bonds with the immutability and transparency inherent in blockchain technology has given rise to a truly groundbreaking and superior financial instrument,” said Kevin de Patoul, CEO of Keyrock. “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 that helped facilitate the first digital native bond issued on a public blockchain under English Law.
Photo by Nastya Dulhiier on Unsplash
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