The CEO of Overstock.com, an online shopping site and a pioneer of commercial bitcoin transactions, has purchased the world’s first cryptobond for $500,000.
The company already has plans to work with qualified institutional buyers to sell a total of $25 million worth of digital bonds to trade on a crytograhpically-protected distributed ledger, using the technology that underpins bitcoin transactions.
Commenting on his decision to be the world’s first buyer, Patrick Byrne said: “I intend to demonstrate my belief not just in Overstock, but in the TØ.com platform that we built and, indeed, in the cryptorevolution itself.”
He added that he had a burning desire to own the “first ever cryptosecurity ever issued”.
“Cryptotechnology can do for the capital market what the internet has done for consumers,” Byrne stated.
Twenty-five TIGRcub crypto bonds will be issued each as a $1 million digital token, available only to fully qualified, institutional buyers.
The new bonds will be the first issued using an institutional-ready platform and with a Securities and Exchange Commission (SEC) filing
Trading on the Overstock platform will be completed within 1 day rather than a customary 3 day used on Wall Street and according to Byrne, issuing the bonds on the platform proves that cryptotechnology can allow “transparent and secure access to capital by emerging companies”.
Whitepapers
Related reading
5 ways blockchain can change the cross-border payments landscape
Cross-border payments is a changing sector of the industry, driven by customers demanding little to no friction and encountering multiple steps, intermediaries ... read more
The SME technology revolution | video
The UK is home to 5.4m micro SMEs that have fewer than nine employees, according to the House of Commons library. They ... read more
JP Morgan blockchain network showcases banks’ DLT progress
JP Morgan’s expansion of its blockchain-based interbank payments project signals that major banks are stealing a march on disruptors and startups by ... read more
Security a priority for EU’s INATBA blockchain taskforce
The European Commission’s new blockchain initiative, the International Association for Trusted Blockchain Applications (INATBA), should focus on quashing extant security concerns around ... read more
