Enterprise Blockchain Projects - Bond Market Applications
Overview – How can blockchain be used by bond market participants
Bond issuance and trading platforms built on blockchain can benefit several stakeholders in the bond market. The list of stakeholders includes enterprises, SMEs, investors, stock exchanges, regulators, treasuries, banks, insurance companies among others.
Some of the benefits of using blockchain based bond issuance platforms are:
- The process of bond issuance can be standardized and made more transparent
- Reduction in settlement time and associated risks
- The amount of paperwork and corresponding errors and corruption can be reduced
- More (smaller) issuers can access the bond markets due to reduced cost and time
- Better efficiency in the secondary trading market
- Better regulatory compliance and supervision
- Rating of bonds becomes more efficient and accurate
Several bond issuance and trading platforms have been tested successfully and are under development. The steady growth in the number of new projects initiated indicates that the excitement around these platforms is increasing. However, before these platforms become commercialized, they need to overcome few challenges and need to be tested thoroughly which seems to be delaying the launch of these platforms. Also, bond markets are highly regulated and any commercial launch could require regulatory tweaking which is not the easiest and the fastest task. Please contact our research team to learn more about how and in what areas can blockchain disrupt the bond market ecosystem.
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ESG Intelligence closely tracks the enterprise blockchain adoption across different industries, countries, and applications. We have provided sourcing intelligence to several senior IT decision makers, who are exploring the adoption of this technology. Our database of 800+ enterprise blockchain projects and 500+ enterprise blockchain vendors make us the right source to start your blockchain research.
Our team is well equipped to produce research reports customized to your specifications and focusing on the use of blockchain in any industry/ applications/ country. Here are some ways in which our research can help you:
- What are the benefits that every stakeholder will derive from blockchain adoption?
- What are the blockchain adoption trends with respect to project initiation, platform selection, and vendor selection?
- What are major challenges to commercialization of the technology?
- How does blockchain integrate with other emerging technologies – IoT, AI, 5G, Big Data?
- How can blockchain help organizations improve sustainability performance?
- Identification, comparison, and analysis of vendors who are working on blockchain implementation.
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Select Enterprise Projects/ Blockchain Use Cases
Stakeholders: Municipal Corporation, Asset Management Company
Key Benefits: Reduced cost for issuance of municipal bonds. Funds raised for local projects by issuing bonds to locals. It will make it cheaper and easier for locals to invest. No middlemen so there will be no markup. The security is will be issued in US dollars, there will be no risk of volatility due to cryptocurrency fluctuations.
Stakeholders: Financial Services Provider
Key Benefits: The platform tends to eliminate the issues of asset servicing across the full lifecycle of a bond trade, from issuance to coupon payment and maturity.
Stakeholders: Consortium of banks and financial institutions
Key Benefits: The platform enables automated coupon payment and redemption. On-chain identity registry to facilitate the permissions for validators and transactors, and the association of those roles to different organizations.
Key Benefits: It will make the transactions faster, secure and cost-effective.
Stakeholders: Corporate Issuer
Key Benefits: It will make transactional almost real time as compared to the current 2-3 days timeframe. Reduces loopholes created during the time frame which may result in the failure, thus increasing the success rate of the transactions. Reduces the risk of naked short selling.