Hamilton, Bermuda, April 16, 2024 10:01 AM AT: PV01 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.
Investor benefits include access to the US Treasury bond market directly from USDC holdings without on- or off-ramps to fiat, and the ability to use digital bonds as interest-bearing collateral.
“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.”
“This first issuance demonstrated that bonds can be issued, traded and redeemed on-chain,” said Max Boonen, CEO and Co-Founder of PV01. “PV01's initial product is intended to become a building block of decentralized finance and pave the way, soon, for corporate bonds native to the blockchain."
"This first issuance demonstrated that bonds can be issued, traded and redeemed on-chain,” said Max Boonen, CEO and Co-Founder of PV01. “PV01's initial product is intended to become a building block of decentralized finance and pave the way, soon, for corporate bonds native to the blockchain.”
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.
About PV01:
PV01 is a leading global blockchain finance provider founded in 2023 by B2C2 founders, Max Boonen and Flavio Molendini. The company acts as the arranger and broker-dealer for issuers of digital bonds, and manages the structuring, book-building and sales process to qualified non-US institutional investors through a non-custodial platform. PV01 raised $9mn in seed funding from Tioga Capital, BlockTower, and Ryze Labs. Learn more at www.pv0.one
Media Contact:
Tim Reed
Your Partners, LTD
tim@y.partners