BlockEx announced today that it will develop standardized templates "which will cover 90% of the documentation required" for bond issuances with the BlockEx Digital Asset Platform.
Developed to be framework-agnostic, BlockEx supports any blockchain framework from the backend, including Ethereum, Bitcoin, Credits, and Hyperledger.
Winston & Strawn LLP has consulted across industries for over 160 years. Finance partner Angus Duncan is delighted to be working with BlockEx and has said:
“We have been closely watching developments in blockchain technology and have been looking at opportunities to create efficiencies for existing structures by incorporating blockchain technology.”
BlockEx CIO Aleks Nowak sees a demand for an untapped market.
"We have received a lot of interest from SMEs [small and medium-sized enterprises] who have been excluded from capital markets because the costs of going through a bond issuance are too high," said Nowak.
BlockEx's modernization allows for instantaneous clearing of settlement transactions, meets Know-Your-Customer compliance standards, and provides a level of transparency synonymous with blockchain technology. According to Nowak, the innovation could save businesses between 50 and 75 percent of what it currently costs to engage in a bond issuance.
CEO at BlockEx Adam Leonard believes that the tool will radically change the existing setup for bond issuance because the current climate "makes it uneconomical and sometimes impossible for SMEs [small to medium-sized enterprises] to exploit the bond market and obtain access to capital markets."
Nowak is optimistic that firms once unable to profit from costly bond syndication will see a market open up to them, saying:
"This is a huge opportunity for SMEs to access the bond market and BlockEx is proud to provide the gateway to make this happen."