BlockEx to Radically Democratize Bond Issuance with Smart Contracts

BlockEx, an institutional grade Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term with Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term assets origination, has announced a new partnership with the international law firm Winston & Strawn LLP, with the purpose of creating standardized templates for approximately 90% of the legal documentation required for bond issuance.

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“We have been closely watching developments in blockchain technology and have been looking at opportunities to create efficiencies for existing structures by incorporating blockchain technology,” said Angus Duncan, a finance partner at Winston & Strawn in London. “We are delighted to be working with BlockEx on their exciting new project.”

The developers say that these smart contracts will dramatically reduce the time and cost of bond issuances and have already garnered the company a dozen new issues which are currently under due diligence vetting. Furthermore BlockEx is leveraging its existing software to bring about enhanced automation to the entire lifecycle of a bond in order to further reduce costs.

“The BlockEx Platform will democratise bond issuances enabling small to medium sized enterprises (SMEs) to tap into bond markets at lower costs. A bond issuance will normally cost between $200,000 to $400,000 once banking and legal fees are accounted for,” said James Godfrey MD Capital Markets at BlockEx. "Listing on exchanges and obtaining bond ratings can add $165,00 to $200,00."

“We have received a lot of interest from SMEs who have been excluded from capital markets because the costs of going through a bond issuance are too high. The BlockEx Digital Asset Creation tool for SME debt via bonds, trade finance and syndicated loans radically changes the existing set-up,” said Adam Leonard, CEO at BlockEx.

"The BlockEx Platform will shave costs by 50 - 75%. This is a huge opportunity for SMEs and BlockEx is proud to provide the gateway to make this happen,” said Aleks Nowak, CIO at BlockEx. Instantaneous clearing and settlement of transactions means bond trades operate in T+30 seconds, as opposed to T+5 days, reducing counterparty risk. Transparency is uniquely increased, with KYC and due diligence available at the time of issuance.

The BlockEx Digital Asset Platform will be launching at the end of May 2017 with a full exchange, white label brokerage and debt origination tools that allows for full lifecycle management of Blockchain based financial assets.