Bondex is designed for Issuers in need of extra finance, who can use the platform to create their own whitelabel or managed bond issuing portal with best-in-class software deployed to register bondholders and disburse coupon interest to investors. Bondex uses decentralised technology but is still compliant with local regulations thanks to built in KYC & AML procedures. This enables Bondex to connect decentralised blockchain solutions to real life assets.
Bloqbuster Group has a specific interest in disruptive and game-changing startups, bringing blockchain technology to end consumers with the best user experience in mind. Flashboys is a software development company focused on building decentralised applications with a strong focus on financial services and applications and one of the largest development teams in Europe. The two companies first started working on a small project for issuing bonds on a local level and immediately saw there was huge potential to utilise blockchain in an alternative financing model.
Briqchain, Bondex’s launch partner, will open their IBO ( Initial Bond Offering ) in September using Bondex as their trusted solution provider. Briqchain and Bondex have previously partnered to realise the first issuance of corporate bonds, fully compliant with local regulations, on the Ethereum blockchain in 2017.
Briqchain will issue bonds with a nominal value of 10 EUR per token, with an annual interest rate of 4% (paid monthly) and repayment at maturity after 5 years. The funds will be used to buy properties in the Netherlands and rent them out to young professionals, students and families. There is a huge shortage of high-quality and affordable rental housing in the Netherlands and Briqchain is aiming to solve this together with their community.
Instead of offering equity tokens in an underlying property. Briqchain specifically chose to offer bonds represented by blockchain tokens. As Daan Ellens (Chief Operations & Finance of Briqchain) says:
“We believe in a fair investment program with a good fixed interest for investors and, more importantly, an exit after 5 years so that it becomes a real alternative for savings. Equity always sounds like a great promise, but to whom are you selling your equity tokens after 5 years? Maybe there is no exit at all. With Bondex, investors can clearly see the roadmap from investment to maturing asset.”
After the IBO, investors can log in to their own dashboard environment where they can track their investments, claim coupon payments and even reinvest or withdraw their EUR balance to their personal IBAN bank account. Soon secondary trading of the bonds on the decentralised exchange of Bondex will become available as well.