Fineqia International Inc. unit Fineqia Ltd partnered with Nivaura Ltd. to issue tokenized bonds in the U.K.
Under the partnership, Fineqia will use Nivaura's capital markets platform to perform a fully automated tokenized bond issuance and administration, and these tokenized bonds will be registered and cleared on a public Ethereum blockchain.
The tokenised bond issuance is a test required to be conducted by Fineqia Ltd. as part of its acceptance into the U.K. Financial Conduct Authority's Sandbox Regulatory Program. The program seeks to provide firms with, among other things, the ability to test their services in a controlled environment and support them in identifying appropriate consumer protection measures, according to the regulatory authority's website.
The test will take place in the first quarter, with results to be released in the same quarter. The test will enable cryptocurrency owners to borrow fiat funds via cryptocurrency asset-backed bonds.
Finequa International made a minority investment in Nivaura in January 2018.