UBS Bank Is Experimenting with 'Smart-Bonds' Using the Bitcoin Blockchain

Following the recent announcement of Overstock to offer cryptosecurities, UBS Bank revealed that it is currently experimenting with blockchain-based bonds as well. During his talk at IDX Derivatives Expo in London, Alex Batlin, UBS Bank's Chief Information Officer for innovation said that they are working on smart-bonds using the bitcoin's public ledger of transactions. Batlin described these bonds as "risk-free interest rates and payment streams were fully automated, creating a self-paying instrument." "The key attraction is that there is no middle or back office, and no registry, so....

Deutsche Bank believes that blockchain technology will become more widespread over the course of the next ten years. The comments come after the German banking giant carried out a blockchain-based experiment that focused on programmable bonds. While declining to disclose the two providers that worked with the bank during the experiment, Deutsche Bank told CoinDesk in an email: "The test [a proof-of-value] is successfully completed. The corporate bond was ideal to test blockchain on the lifecycle of an asset (issuance, coupon payments, redemption), hence why we chose it; at this stage, we....

China Construction Bank, one of the “big four” banks in China, is selling $3 billion in bonds that can be paid for with bitcoin. The bonds will be listed on a regulated Malaysian digital asset exchange. Beijing-based China Construction Bank (CCB) is selling $3 billion in bonds for bitcoin and U.S. dollars through its unit in Malaysia, the South China Morning Post reported Wednesday. This is the first digital security issued by a Chinese bank on a blockchain, the publication added, noting: The deal also allows investors to trade these China Construction Bank’s digital....

The Bank of Thailand has issued the world’s first blockchain-based government savings bond platform. The Bank of Thailand launched the world’s first blockchain-based government savings bond issuance platform using IBM’s blockchain technology.Within two weeks of the launch, the central bank sold more than $1.6 billion worth of savings bonds, as per IBM’s official announcement on Oct. 5, 2020.The use of blockchain technology is said to have reduced the bond issuance time from 15 days to just two days. The increased efficiency of the process has also reduced operational cost and redundant....

A major bank in Australia is developing a blockchain-based system for the sale of government bonds. The Australian Financial Review reported that Commonwealth Bank of Australia has designed a blockchain network concept that could be utilized to issue and exchange government bonds. The Queensland Treasury Corporation, which acts as the Australian state’s central financing authority and provider of treasury services, is said to have tested the concept. Other states in Australia, according to the newspaper, have also eyed the technology. Deputy CEO for the Queensland Treasury Corporation....