The launch of the world’s first regulated Bitcoin bond is changing the name of the game. Such bonds can help investors minimize the risk of volatility; in addition, cutting out exchange rates now allows investors to keep more of their gains while trading in a trusted product.
LBX is the prime broker for this new option, managing the incoming buys and monthly payouts for the Bitcoin bond. Investments are held in custody by LBX, which is regulated by the UK’s Financial Conduct Authority. In essence, the contract is an IOU between the institutional investor lender and the borrower or bond issuer: Investors plug capital in and then receive monthly interest. At the end of the term, the initial capital is returned.
For investors who think for the long term and appreciate the safe haven that bonds can represent Bitcoin bonds offer regulation, reduced risk and an appealing new option.
In my recent article, “Bitcoin Bonds Building Bigger Bridges for Institutional Investors,” I highlight the importance of regulation and the way forward for cryptocurrency products while shining the spotlight on bitcoin bonds. Read more: https://financialit.net/blog/bitcoin–bonds–begin–building–bigger–bridges–institutional–investors