Argento, a Luxembourg based securitisation firm and London Block Exchange (LBX) announced on 3rd July that it is issuing the first bitcoin-denominated bond, which is regulated under the United Kingdom’s regulator, the Financial Conduct Authority (FCA).
Argento manager Phil Millo said, “We are thrilled to have structured and produced the world’s first institutional grade bitcoin-denominated financial product,” adding, “The large investment banks really dropped the ball on this one.”
Cointelegraph said, “The Argento-LBX bond represents a first in regulated cryptocurrency products, in that it contains no fiat exposure for investors. It is readily available via Bloomberg Terminal, and is the first crypto product to have its own ISIN code.”
According to reports, the bonds are available for various lengths of time, with Argento naming them after crypto slang, such as FOMO,’ ‘HODL’ and ‘MOON.’
HODLers are one of Argento’s and LBX’s target markets. LBX CEO Benjamin Davies said, “This is an excellent product for people who currently hold bitcoin and aren’t planning to sell over the next few years,” and he added, “Now, for the first time, they have an institutional grade way of making their wallets grow without exposing their bitcoin to the swings of the traditional ‘fiat’ currency markets.”
Cointelegraph also remarked that a number if developing nations were very keen on the idea of issuing bonds tied ot bitcoin and have been talking to the International Monetary Fund about the concept.