Brazil’s Piemonte Holding Becomes First to Open Secondary Trading of $16.2M Tokenized Bond to Private Qualified Subscribers on Ethereum Public Blockchain Using Horizon's Technology
Dollarmarket value to apply the 3.50% annual coupon pro rata from issuance date to accurately value the bond on the secondary marketplace.
Goal to Unlock Global Secondary Liquidity Potential in Bond Market
New York, NY, Dec. 18, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- GlobexUS Holdings, Corp. (“Horizon”), the blockchain-as-a-service solutions company, today announced that Piemonte Holding de Participações S.A. (“Piemonte”), an A-rated Brazilian financial institution which develops and manages tailor-made investment products, has closed its R$ 66m (US$ 16.2m) private bond issuance and successfully completed the launch of a secondary market for the Piemonte “Smart Bond” on Ethereum using Horizon’s compliance, custody, and blockchain trading solutions.
While most other blockchain bond issuances have been on private blockchains or part of an internal pilot program, this is the first bond issuance on Ethereum to include a public secondary trading platform for qualified subscribers to buy and sell bonds and offer liquidity potential prior to bond maturity. In Piemonte’s $16.2m fully subscribed issuance, there were originally five bond holders. Today, using Piemonte’s bond exchange (https://piemontetrading.com/) powered by Horizon’s blockchain trading technology, these holders can now trade their Smart Bonds amongst other qualified Piemonte clients.
Using Ethereum smart contracts, the Piemonte Smart Bond is transparently priced on an “adjusted face value” basis aligned with the U.S. Dollar and Brazilian Real exchange rate, as initially pegged on the bond issuance date of August 19th. Furthermore, Horizon’s dynamic pricing service contemporaneously adjusts the bond’s U.S. Dollar market value to apply the 3.50% annual coupon pro rata from issuance date to accurately value the bond on the secondary marketplace.
“In August we issued our tokenized Smart Bond and today we’re launching the first regulated bond-trading marketplace on a public blockchain,” says Piemonte CEO Alessandro Lombardi. “Although this Smart Bond’s issuance was limited to qualified private investors, the Smart Bond was fully subscribed with zero distribution efforts made by Piemonte. We can only imagine the distribution and liquidity potential of future blockchain bond offerings once these competitive bonds are open to the general public.
“We believe we are making a transformational and historical deal by streamlining our book-building, investor compliance, asset allocation and bond custody using Horizon’s technology,” continued Lombardi. “We share Horizon’s compliance values and believe that this integrated approach helps to provide a streamlined path to usher the bond market into the digital era. We believe that it’s no longer a matter of us asking IF blockchain will underpin major global securities platforms; after today, it’s only a matter of WHEN.”
Horizon CEO Brian Collins says, “The idea that blockchain could have the potential to open and bring liquidity to the bond market has been discussed, and trialed, at length. Today, we’re proud to work alongside Piemonte to bring their compliance-focused bond market concept to fruition and introduce liquidity potential to a historically illiquid market with our integrated issuance, KYC, AML, custody, and trading solutions.”
Piemonte has worked since 2017 to align its bond offerings with blockchain technology while tightly adhering to the complex and internationally compliant securities laws and regulations in Brazil. Horizon’s blockchain software supports Piemonte's Smart Bond from issuance through to secondary trading. The bond was issued on Ethereum pursuant to the ERC-20 standard using Horizon’s Tokenetics service, in conjunction with Horizon’s investor KYC on-boarding and AML risk assessment tools.
Horizon recently launched its Series A funding round and is currently accepting investments. Qualified investors can become shareholders in Horizon’s proprietary blockchain trading and compliance software business being licensed to entities around the globe. To learn more and to access Horizon’s investment materials, visit https://offering.horizon-globex.com/.
About Piemonte:
With headquarters in Rio de Janeiro and a U.S. presence New York City with SEC CRD# 289207, Piedmont combines local and global knowledge as its platform crosses borders. Piemonte shares its excellence and ethical values with its clients and provides state-of-the-art tools for Asset Management, Administration and Financial Services. Piemonte's investment platform enables any client, business owner in a small country town or executive of a multinational corporation, to reach new frontiers with technical precision and tailored services; for more, visit http://piemonteholding.com/
About Horizon:
Horizon offers a suite of integrated blockchain software applications for compliant issuance through secondary trading of digital securities. Truly a compliance-first business, our solutions combine Wall Street and Silicon Valley to power the next generation of exchanges and securities offerings in the U.S. and globally.
Current product solutions include asset tokenization through Tokenetics (tokenetics.com); a white-label KYC smartphone app to onboard and verify investors through KYCware (kycware.com); anti-money laundering screening against a database of global sanctions, watchlists, & PEPs through AMLcop (amlcop.com); transfer agent custody tools through (custodyware.com), and an advanced retail trading app for compliant secondary trading on affiliated digital securities marketplaces through Open Order Book (openorderbook.com). All software applications can be utilized independently or integrated with one another. Learn more at https://horizon-globex.com/.
Press Contact:
Vanessa Malone
(805) 637-1963
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