In partnership with JP Morgan, Moody’s, RSM and other companies, the startup Nivaura has created a bonus based on Ethereum for the LuxDeco distributor, a firm that operates in the United Kingdom. Nivaura is an emerging company that works for a more economical issuance and administration of financial instruments, having obtained some recognition from institutions such as USB Future of Finance, Microsoft Ventures, and Digital Swiss Kickstart Accelerator.
In the words of Avtar Sehra, CEO of Nivaura:
As digital currencies have become an accepted payment mechanism, automatic transactions in the area have become a standard practice for many. The fact that we have successfully executed a private transaction with retail investors puts us in the great position of helping those who follow in LuxDeco’s footsteps.
It should be noted that the highest financial authority in the United Kingdom, the Financial Conduct Authority (FCA), contributed to the regulatory supervision of this bond, which could have an enormous impact in the area, since intermediaries contribute time and costs to the inherited infrastructure, while replacement by smart contracts could make the bonds available to more limited-capital companies. The news has come to light just as Bitcoin prepares for its debut on Wall Street, with the future contracts of CME Group.
However, the greatest importance of the bond lies not in the adoption of the ETH, but rather in the use of the Ethereum Blockchain, because it will be there where it is processed through its compensation, settlement, and registration. This new implementation could demonstrate that there is significant business potential when using public block chains; in fact, according to Shra, founder of Nivaura:
“What we are demonstrating is that open public infrastructure can be used for regulated financial instruments, which is a very important step, because from the beginning we have believed that this is the way forward”.