Digital Bonds Ltd has introduced UK law compliant zero coupon digital bonds directly on the Ethereum public blockchain. The USDC-denominated Notes are fully backed by U.S. Treasury Bills, acquired through the proceeds of the issuance, and are subject to English law securities deeds for the benefit of the Noteholders, with securities agent by Ancra Trust Company, LLC. held on the basis of
PV01 Capital Markets Ltd, a Bermuda-based licensed start-up, arranged the transaction with support from the Hogan Lovells team. Sharon Lewis, Head of the Financial Institutions Sector Industry Group, advised his PV01 as arranger and tokenizer, along with his partner Bryony Widdup and senior associate Andrea Salsi. In addition, Partner Kit Johnson and Senior Associate Axel Drouw served as advisors to Ancra Trust Company LLC as security agents. PV01 specializes in innovative tokenization services and focuses on integrating blockchain technology with traditional financial markets.
Issuance of digital bonds occurs on-chain in dematerialized form and can be transferred seamlessly between investors through bearer functionality, eliminating the need for a central securities depository.
In addition, the Hogan Lovells Digital Assets and Blockchain Hub provides comprehensive resources on digital capital markets, including a webinar series discussing the digitalization of UK, EU and US fixed income.
This initiative by Digital Bonds Ltd, driven by PV01 Capital Markets Ltd and supported by the legal expertise of Hogan Lovells, represents a significant advancement for digital capital markets. By leveraging blockchain technology, digital bond issuance presents a transformative opportunity to improve the efficiency, transparency, and accessibility of the financial industry.
