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Bond Tokenization

Tokenized bond positions provide composability, unlocking opportunities for collateral and increasing liquidity. Once a bond is purchased, users receive a tokenized bond token which represents their position. The tokenized bond can be either ERC20 or ERC1155

Recap

ERC1155 are tokenized Fixed-Term bond positions
  • each position vests for a set amount of time after purchase
  • same day purchase, regardless of the time of purchase (based on UTC timestamp), will receive the same token
ERC20 are tokenized Fixed-Expiry bond positions
  • fixed maturity (i.e. all purchases will vest at a specific timestamp)
  • long duration up to 9 months

Composability

Tokenized ERC20 and ERC1155 positions render the tokens to be composable, unlocking various opportunities for participants in the bond marketplace:
  • Collateral: the ability for the Issuer to tie up with Lending & Borrowing protocols to whitelist the tokenized bonds as collateral. For Users, this increases capital-efficiency and
  • Liquidity: the ability to enhance the liquidity of a previously illiquid asset to a liquid one via fractionalization and secondary market