Hogan Lovells Facilitates Historic Digital Bond Issuance On Ethereum Blockchain

Hogan Lovells Facilitates Historic Digital Bond Issuance On Ethereum Blockchain

On April 9, 2024, a segregated Account Managed by Digital Bonds Ltd (the Issuer) made history by issuing an English law-governed zero coupon digital bond. Denominated in USD Coin, this innovative bond was directly recorded on the Ethereum public blockchain. The bond was fully backed by US Treasury Bills, acquired using the proceeds from its issuance. These Treasury Bills were held securely under an English law-governed security deed with Ankura Trust Company, LLC acting as the Security Agent — all for the benefit of bondholders.

The transaction was orchestrated by PV01 Capital Markets Ltd. (PV01), a licensed start-up based in Bermuda. Their collaboration with the Hogan Lovells’ team —comprising Sharon Lewis (Head of Financial Institutions Sector Industry Group), Bryony Widdup (Partner), and Andrea Salsi (Senior Associate) advising PV01 as an Arranger and Tokeniser, alongside Kit Johnson (Partner) and Axel Delaud (Senior Associate) advising Ankura Trust Company, LLC - was instrumental in this groundbreaking achievement. PV01, known for its innovative tokenisation services, bridges the gap between Blockchain Technologies and Traditional Financial Markets.

The Digital Bond, issued in dematerialised form on the blockchain, boasts bearer-like features, allowing seamless transferability between investors (within predefined eligibility limits) without the need for a central securities depository.

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