The partnership will “perform a fully automated tokenized bond issuance and administration, registered and cleared on a public Ethereum blockchain, to conduct its test for issuing crypto asset-backed bonds in the UK.”
Fineqia will provide the white label software to Nivaura to accomplish the issuance.
Fineqia is required to do the test to be accepted in the Financial Conduct Authority’s (FCA) Fintech Sandbox. The test is scheduled to take place during the first quarter.
The platform will enable owners of cryptocurrencies to borrow fiat funds via the issuance of crypto asset-backed bonds.
Fineqia says the product has “found appeal” with institutional owners of digital assets. The partnership with Nivaura allows for digital asset owners to offer transferable fiat denominated bonds to investors for fixed durations and coupons.
Fineqia CEO, Bundeep Singh Rangar, said that Nivaura’s technology is an enabler of financial transaction and why they chose to invest in the company last year.
“It gives the Fineqia platform a simple transaction management workflow with a seamless blockchain-based asset registration and clearing solution.”
Fineqia said it can facilitate the more traditional issuance asset-backed bonds as well.