Ignium.io, a safety token issuance and settlement platform primarily based in Estonia, is as we speak asserting the launch of a €10 million bond token program of Viking Commodities Capital (VCC) OÜ. According to an announcement shared completely with Finance Magnates, the businesses say that VCC’s bond token is the primary to be backed by a commodity: grain.
Indeed, Viking Trading OÜ, an Estonia-based agency that trades grain internationally, would be the first recipient of the funding. The firm describes itself as “the leading international grain and vegetable oil trading company, sourcing the products from the Black Sea region and distributing them to the markets of the Mediterranean region, North-Africa, Middle-East, Far-East and Americas.”
Yevgen Morgunov, a member of Viking Trading’s Board, stated in a press release that “using capital markets for funding our trading activities is part of our strategy.”
“Hence, this transaction acts as a natural next step. We were positively surprised how seamless and simple the process of securities issuance and onboarding of investors across borders was.”
VCC says its tokens act as a “short-term, high yield, asset-backed, fixed income product to global investors.”
The first issuance throughout the program was €3 million in bond tokens. The tokens have already been absolutely subscribed to efficiently on Ignium’s platform. Artjom Vakulenko, an government at Viking Capital Commodities, stated in a press release that “we are delighted to see investor appetite for this product issued by using innovative technology and means.”
“The instrument represents a good opportunity for investors to be exposed to the commodity sector through short term debt instrument, especially in the context of rising commodity prices and falling interest rates,” Mr. Vakulenko defined.
According to the announcement of the issuance, VCC’s bond tokens reportedly act as “short-term, high yield, asset-backed, fixed income product to global investors.”
“Capital markets are in scarcity of 6-months bonds with a 10% each year coupon price. These are the sorts of bonds which might be offered by VCC by way of Ignium. Investors internationally can seamlessly and operatively subscribe to those by way of Ignium’s platform.
Combining grain buying and selling with blockchain expertise – for the primary time?
Ignium and Viking Trading additionally see the launch of the €10 million bond token issuance as one other vital second in capital markets historical past.
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Specifically, the businesses say that the bond token issuance marks “the convergence of a standard buying and selling enterprise”–grain buying and selling– with “globalised blockchain technology” within the type of Ignium’s platform.
Reimo Hammerberg, Ignium’s co-founder and chief government, stated that the launch is “a great example of how new technology is being employed for trade finance and capital market transaction by established participants of their craft.”
“This further proves the relevance of the use case of digital assets for mainstream finance,” he stated. “We are thrilled to be able to help.”
Ignium: Launching a bond token on our platform prices 10-20 occasions lower than opponents’ companies
The announcement of the bond token issuance additionally says that VCC’s determination to launch on Ignium supplied an a variety of benefits that might not have been attainable with conventional fundraising means, and even different safety token launches. For instance, Ignium beforehand advised Finance Magnates that issuing a safety token by way of Ignium prices roughly 10-20 occasions lower than the charges of competing safety token issuance corporations.
Ignium additionally says that as a result of the method of launching a bond token by way of its platform includes “zero intermediaries,” the method has decrease prices and is much less weak to procedural mishaps. together with excessive safety, decrease prices, and “zero intermediaries.”
The firm additionally says that its bond token issuance course of is extremely safe. “Bond tokens on Ignium’s platform are issued and traded through a blockchain-based platform that is provided by Guardtime,” Ignium’s announcement says.
Ignium describes itself as a blockchain-based platform that firms can use to “issue and sell digital assets to investors around the globe with no intermediaries.” The platform additionally “offers investors an ‘e-commerce-like’ secondary market, and a state-of-the-art cap-table solution that is constantly updated in real-time.”
Finance Magnates beforehand reported that Tangible KK, a Japan-based bond securities agency, issued a safety token on Ignium’s platform in late 2020. The cash raised by way of the issuance funded the event of ‘Basecamp’, a seven-unit boutique ski resort in Niseko, Japan.