Hogan Lovells advises on issuance of native digital bond, governed by English law and issued on a public blockchain
24 April 2024 - On 9 April 2024 a segregated account of Digital Bonds Ltd (the “Issuer”) issued an English law governed zero coupon digital bond, denominated in USDC, directly on the Ethereum public blockchain. The bond was fully backed by US Treasury Bills, which were purchased using the proceeds of issuance and held subject to an English law governed security deed with Ankura Trust Company, LLC as Security Agent, for the benefit of the bondholders.
The transaction was arranged by PV01 Capital Markets Ltd. (“PV01”), a licenced start-up incorporated in Bermuda, with the assistance of the Hogan Lovells’ team, consisting of Head of Financial Institutions Sector Industry Group Sharon Lewis, partner Bryony Widdup and senior associate Andrea Salsi (advising PV01 as Arranger and Tokenizer), partner Kit Johnson and senior associate Axel Delaud (advising Ankura Trust Company, LLC as Security Agent). PV01 is an innovative arranger and provider of tokenisation services, focused on the convergence of blockchain technologies and conventional financial markets.
The Digital Bond was issued on chain in dematerialized form and designed to be freely transferable between investors (subject to certain pre-programmed eligibility limitations) through bearer-like features, without the need for a central securities depository.
The Hogan Lovells Digital Assets and Blockchain Hub hosts further resources on digital capital markets, including our webinar series on the digitalisation of bonds in the UK, EU, and U.S.
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