CoinMetro Launches Tokenized Bond Through Ignium’s Global Security Token Infrastructure
Earlier this year, cryptocurrency exchange CoinMetro and security token issuance and settlement platform Ignium joined forces to form an end-to-end digital securities marketplace. Now, CoinMetro is announcing its own fundraising round: on November 3rd at 12:00pm GMT, CoinMetro launched a tokenized bond through the securities marketplace.
Soon, CoinMetro’s bond — issued on and settled in Ignium — will be tradable on a secondary market, which has been built by CoinMetro. And “yes, the doors are open for retail investors around the globe,” CoinMetro chief executive Kevin Murcko told HackerNoon earlier this week.
Ignium, which was co-founded by Reimo Hammerberg and Kevin Murcko in 2019, was created to democratize capital markets around the globe.
Through Ignium, companies can issue security tokens that can be sold anywhere in the world; investors of all sizes can purchase security tokens that have been issued on Ignium’s platform. Transactions are settled instantly, providing quick access to capital and the potential for high market liquidity.
“We are delighted to announce this new project with our own collaboration partner,” said Reimo Hammerberg, CEO of Ignium. “In our opinion, blockchain alone will not ‘magically’ open up capital markets. Blockchain will surely add efficiency, but blockchain securities need liquidity — this can be achieved by combining an innovative operational model with DLT technology. This is what Ignium and CoinMetro are building,” he added.
Together, Ignium and CoinMetro are building a new kind of digital securities landscape
The launch of the CoinMetro Bond Token represents another important step for Ignium, which has been steadily building the number of companies that have issued tokens through its platform throughout the year.
Indeed, the CoinMetro Bond token issuance follows a similar announcement by Tangible KK, which began its sale of digital securities on the marketplace created by CoinMetro and Ignium several months ago. Tangible is a Japan-based bond securities firm that is using the money raised through the issuance to fund the development of ‘Basecamp’, a seven-unit boutique ski resort in Niseko, Japan. Investors in the bond token will own a small piece of the Basecamp project.
Similarly, investors in the CoinMetro Bond token will own a small piece of the cryptocurrency exchange. Like Tangible, CoinMetro’s bond was issued as a digital security through Ignium’s platform; it was then put up for a primary sale. CoinMetro has reportedly been working to issue a tokenized bond since its initial coin offering (ICO), which took place in 2017.
Kevin Murcko, CEO of CoinMetro, commented that “CoinMetro’s vision is that we, collectively, are the future of finance. The word ‘we’ here represents not just CoinMetro itself, or our clients, or our growing community, it literally means all of us, everyone who feels that the traditional finance user experience is lacking.”
“Together with Ignium we have taken another step toward that goal by creating an ecosystem that is helping to build a better, more connected, more liquid, and far more accessible capital market,” he said.
Details for investors: CoinMetro Token Bond sales, interest, and more
The CoinMetro bond is a unique offering, showing some of the flexibility that Ignium provides to it’s issuers.
Here are just a few of the asset’s characteristics:
- The bond pays dynamic interest at a rate of 8% to 12% annually based on a customized tier schedule
- Interest is paid to investors daily
- After the two year term, investors can redeem their bonds for CoinMetro’s own Utility Token (XCM), or;
- Investors have the option to convert into an equity-like instrument at the current valuation
- Once the primary sale ends, a secondary market will be available on the CoinMetro platform as well as billboard functionality at Ignium
For more information about the CoinMetro Bond token, click here. To learn more about how your company can issue a security token through Ignium, click here.
