Trend of Tokenization Series: A Spotlight on Tokenized Government Bonds From Belarus

The trend of tokenization across the globe and across all the industries is striking a chord day-by-day, we’ve seen tokenization for investment classes both in equities and bond segments in the recent past. 

French-based credit institution Societe Generale SFH, which is a subsidiary of one of Europe's largest financial services groups, Societe Generale Group, issued a 100 million euro ($112 million) bond as a security token form on the Ethereum (ETH) blockchain in the recent past. Societe Generale SFH went on with its debut pilot project on ethereum blockchain in collaboration with Societe Generale FORGE. 

But for now, in yet another case, we witness The global exchange website Currency.com has announced to offer a tokenized form of the government bonds of Belarus.

Currency.com, is already in the service of tokenized securities trading platform, like tokenized commodities, tokenized shares, and tokenized indices. 

Now is the time for them to announce for the first time, to enable users to trade and invest in tokenized government bonds using fiat money, Bitcoin (BTC) or Ethereum (ETH).

They issue a tokenized version of Belarusian government bonds and intends to include additional tokenized government and corporate bonds going forward.

To begin with the project, the access to issue around 252 of the Belarus Currency and Stock Exchange with a 4.2% per annum yield would be offered by them.

The tokens would be denominated in USD and priced at $1,000, which corresponds to the cost of the underlying bond, but investors can also have the option to buy fractional tokens. Investors will receive the associated interest payments – as well as the principal amount – through Currency.com in either fiat money or cryptos, which they can reinvest into more bonds or other products on the platform. Investors who have bought a whole token are entitled to the conversion of the physical bond at any point in time.

Well, as per a research report tokenization market is getting more traction and is reportedly valued millions of USDs and is expected to grow exponentially by the end of 2023 with a swift pace of CAGR between 2017 and 2023. This is possible mainly because of robust Blockchain technology’s unique properties to tokenize the assets are commendable and potential seems to be infinite.

We’ve seen several instances of this trendy development in the recent past, Nasdaq’s initiatives in tokenization business has already been reported in our recent posts. Symbiont, a blockchain technology company, raised by a round of funding about $20 million that has been led by Nasdaq.

Currency Strength Index: FxWirePro's hourly BTC is flashing at 58 (bullish), hourly USD spot index is inching towards 12levels (which is mildly bullish) while articulating (at 06:02 GMT). 

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