Multi-Currency Bond

Definition ∞ Multi-Currency Bond is a debt instrument where the principal or interest payments can be made in one of several specified currencies. It offers flexibility to both the issuer and the investor by allowing payments in different denominations. This type of bond can mitigate currency risk for international investors or issuers. It represents a financial obligation with adaptable payment terms.
Context ∞ The concept of a multi-currency bond is gaining renewed interest with the advent of tokenized securities on blockchain platforms. News reports on financial institutions exploring the issuance of digital bonds that can settle in various fiat-backed stablecoins or central bank digital currencies. The discussion centers on how blockchain technology can streamline the issuance, management, and settlement of such complex financial instruments across borders.