The world’s largest economies are on the verge of recession, and continued uncertainty means that the outlook for the next 12 months is rather bleak.
Investment bank Nomura recently predicted that America, the eurozone, the UK and Japan are at risk of recession as inflation continues to rise.
Stocks have taken a hit and the cryptocurrency markets have not been left behind. But in times of turmoil, bonds tend to look more attractive.
Bonds are actually debt instruments – IOUs. They can be issued by governments and companies, as well as held by the public.
Interest is paid on a regular basis and the face value of the bond is subsequently paid at maturity.
Although bonds have been around for many decades, one new crypto project claims that this asset class has yet to emerge in the world of decentralized finance. Why? Because most DeFi projects rely on ERC-20 tokens, which cannot determine specific contractual terms such as coupon rates and redemption dates are attributes required for bonds.
D/bond says it has established a new type of token standard, ERC-3475, to overcome these technological hurdles and ensure that securities can be issued and traded on the blockchain.
In the future, he believes this will open the door for anyone to create their own bonds, and the platform will allow them to be traded through a dedicated decentralized exchange.
Subsequently, users can store ERC-3475 tokens in a D/Bond wallet.
Decentralized Bond Ecosystem
D/Bond CEO Yunan Liu told Cryptooshala: “ERC-3475 is a unique and significant improvement on what the traditional financial system (TradFi) is offering right now. This helps us to harness most of the potential of DeFi in the TradFi market as our platform. is offering fixed-rate interest and guaranteed repayment as money managers say the threat of a recession is real and there are plenty of signs that the spread trajectory is changing.”
PeckShield conducts security audits, and the project also says it has partnered with Blockpit to make it easier for customers to manage their own finances.
Name bond, D/Bond
D/Bond argues that traditional bonds are in desperate need of an upgrade, and ordinary consumers often struggle to access these instruments because they don’t qualify to participate. The project aims to address this issue by ensuring that it is open to all.
According to D/Bond, ERC-3475 tokens can be used to provide fungible and non-fungible tokens, and the standard helps facilitate interoperability between decentralized bond markets as interest grows. It is important to note that they can also be fractional, which means that investors will be able to sell a share of one bond on the secondary market.
“The bond market is an area that DeFi has missed, and we will soon see how DeFi manages to destroy and develop it,” the project claims.
D/Bond will be launched in the fall and will shake up the bond world forever. While conventional bonds can only be traded between 8:00 am and 5:00 pm in the US right now, this platform aims to ensure they are available 24/7 – a truly international market.
This startup is based in Paris and has gained momentum over the past year.
The development of the ERC-3475 standard has now been completed and a security audit of the D/Bond backend is under way.
The project also states that it has built an excellent team and attracted financial backing despite tough market and global economic conditions.
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Credit : cointelegraph.com