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.
This wCBDC-enabled issuance establishes an atomic settlement rail for tokenized real-world assets, drastically reducing counterparty risk and friction in capital formation.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
