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LCX Files for 10 Million Euro Blockchain Bond

LCX spearheads the tokenization of capital markets and digital securities. LCX filed the security prospectus for a 10 Million EUR tokenized bond with the Financial Market Authority Liechtenstein last week. LCX plans to conduct this security token offering (STO) on LCX’s Token Launchpad at in a fully compliant manner after regulatory approvals. 

A blockchain bond is a tokenized security powered by distributed ledger technology to automate the execution of the bond’s terms via programmable smart contracts.

The tokenized bond is called the LCXS1 token and will be publicly offered by LCX at LCX’s platform after regulatory approvals. The filing of the security prospectus to the Financial Market Authority is a key milestone in the process of launching regulated digital assets. LCX’s legal representative has filed the security prospectus, and a variety of additional required documents as appendix, for approval today. Terms and conditions of LCXS1 token may change during regulatory approval process. 

LCXS1 Token is a tokenized bond structured as a fixed-income corporate bond. Token holders will get a fixed coupon of 7% per annum. 

The funds raised will be used for liquidity growth at LCX Exchange and for operational development.

LCXS1 Tokenized Bond Summary

Issuer: LCX AG, Liechtenstein
Issuance Amount: 10 Million EUR
Coupon: 7% per annum
Denomination: EUR 1,000. The minimum consideration is EUR 1,000.
Maturity / Term: 7 Years max. Quarterly termination possible.
Governing Law: Liechtenstein
Blockchain: Ethereum public blockchain

A coupon payment on a bond is the annual interest payment that the token holder (bondholder) receives from the bond’s issue date until it matures.

Tokenized Digital Securities and Blockchain Bonds

Blockchain bonds have the capability to revolutionize financial capital markets by developing a decentralized market of unique digital assets. With the utilization of blockchain for securities, there will be no middlemen that are currently present in a bond transaction. This will result in saving transaction and settlement time. Also, there will be a huge transparency in the transactions for the issuer. 

The execution of blockchain bonds has already started. The World Bank issued its first $110 million AUD blockchain bond in 2018 and issued a second tranche of $50 million AUD in 2019.

In 2021 The European Investment Bank (EIB) issued and settled a 100 million euro digital bond. Background and details are published in an interview by Goldman Sachs: Digitizing Bonds on the Blockchain”.


Disclaimer: The prospectus has not been approved by any regulator at this point in time. This blog post release is not a prospectus and does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction in which such offer or solicitation of sale would be unlawful. No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date.

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