The emergence of the blockchain and distributed ledger technology promises to transform the fixed income markets. The efficiency, transparency and subsequent liquidity these technological innovations produce will transform practices and protocols for clearing, custody, and trading of fixed income instruments. At the same time, debt issuers who adapt to this technology revolution will reap similar benefits with respect to the origination, structuring, and credit functions of fixed income.
Distribution of new private debt issues are going to be brought to market on established exchanges leaning into the electronic future and innovative digital platforms. The transformation will reach its ultimate expression with the adoption of a new form of token that represents the underlying debt instruments and its associated data, i.e., the “tokenization” of fixed income. The definitive record of debt deals will exist on the distributed ledger, where they have been verified and are immutable. This token will be the next generation certificate, a representation of ownership and a passkey for all the documentation in the event series of the financial instrument including creation, structure, performance, and all relevant data.
Inveniam believes the right approach to moving from traditional debt instruments to those moderated by emerging blockchain technologies includes seven key considerations that are foundational to our Inveniam.io platform.
CLICK HERE to learn more about Inveniam’s groundbreaking token structure and how it can transform the fixed income market.