Brazil’s a55 Issues $50m Digital Bonds With D/Bond’s ERC-3475 Standard
Decentralised bond trading and DeFi market-making platform, D/Bond, and Brazilian fintech company, a55, have issued the first regulatory-compliant on-chain asset package worth $50 million.
a55, which provides lines of credit to startups, used D/Bond’s ERC-3475 standard to issue the $50 million non-callable digital bonds.
D/Bond’s ERC-3475 technology introduces Abstract Storage Bonds standard which enables users to store additional specifications including metadata, values and transactions in a digital token without the need for external storage on- or off-chain.
The move comes as it is now being suggested that Brazilian banks are rethinking their aversion to small business lending and are set to compete in the market. It is also coming after stablecoin issuer, MakerDAO, allocated 500 million DAI to invest in federal bonds that saw the demand for safe investment products from centralized exchanges and blockchain funds increase gradually.
With the annual interest rates of the 10-year US Treasury bond in October and of the stable income DeFi agreement similar to Aave and Curve at 4.2% and around 3% respectively, the emergence of the D/Bond/a55 asset package will make up for the 5%-10% range market blank.
According to people familiar with the matter, the main subscribers to the asset package are digital asset custodians and centralized exchanges.
A55 is a fast-growing fintech firm in Brazil that developed a financial underwriting platform for offering a credit line system to companies with recurring revenue.
The D/Bond platform relies on its ERC-3475 standard to enable individuals and institutions to create and issue their own decentralised bonds and derivatives and trade with them on the secondary market.