UK Fintech Company released First Regulated Ethereum Bond

The first Ethereum-denominated bond released by UK Fintech company Nivaura on Wednesday
23 November 2017   455

In cooperation with JPMorgan, Moody’s, RSM UK and more, Blockchain startup Nivaura created the bond for UK-based luxury goods dealer LuxDeco, which will issue it.

As cryptocurrencies or tokenised fiat-currencies become an accepted form of payment mechanism it won’t be long before automated crypto-denominated deals become standard practice, so the fact that we’ve successfully executed a private placement transaction with retail investors puts us in a really good position to help those who follow in LuxDeco’s footsteps.

 

Dr. Avtar Sehra

CEO and Chief Product Architect, Nivaura

The UK’s Financial Conduct Authority (FCA) contributed regulatory oversight to the bond’s development process.

The release could have a considerable impact on bonds specifically. Middlemen contribute time and costs to legacy infrastructure, while their replacement with smart contracts would potentially make bonds available to many more businesses with smaller capital.

The news comes as Bitcoin gets ready for debut on Wall Street through CME Group’s futures.

SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   126

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission