Two European Companies Collaborate To Launch World’s First Bitcoin Bond

By Rishma Banerjee

As was confirmed in a joint press release, on the 3rd of July, two European companies have launched what is being described by them the world’s first genuine bitcoin (BTC) bond.

Argento, a Luxembourg-based securitization firm, collaborated with London Block Exchange (LBX) to issue the bitcoin-denominated bond, which is regulated by the United Kingdom’s regulator, the Financial Conduct Authority (FCA).

Phil Millo, the manager of Argento said,

“We are thrilled to have structured and produced the world’s first institutional grade bitcoin-denominated financial product… The large investment banks really dropped the ball on this one.”

The Argento-LBX bond represents a first in regulated cryptocurrency products, in the sense that it contains no fiat exposure for investors. It is easily available via Bloomberg Terminal, and is also the first crypto product to have its own ISIN code. 

Various durations are available, Argento conspicuously naming them after crypto-specific phenomena such as ‘FOMO,’ ‘HODL’ and ‘MOON.’

HODLers, LBX says, form one of the bond’s major target markets.

The CEO of LBX said,

“This is an excellent product for people who currently hold bitcoin and aren’t planning to sell over the next few years… Now, for the first time, they have an institutional grade way of making their wallets grow without exposing their bitcoin to the swings of the traditional ‘fiat’ currency markets.”

Previously, the governments of several developing nations had informed the International Monetary Fund (IMF) that they were interested in issuing bonds tied to bitcoin.