Brazil: Piemonte “Smart Bond” Opens Up Secondary Trading for Digital Asset

Brazil’s Piemonte Holding says it is the first secondary market place in the country to facilitate trading in a tokenized bond offering. According to a release, a R$ 66m (USD $ 16.2 million) private bond issuance, Piemonte “Smart Bond,” is leveraging Globex US Holdings, Corp (Horizon) compliance, custody, and blockchain trading solutions to facilitate transactions.

Horizon states that while most other blockchain bond issuances have been on private blockchains or part of an internal pilot program, this is the first bond issuance on Ethereum to include a public secondary trading platform for qualified subscribers to buy and sell bonds.

According to Horizon, Piemonte’s $16.2 million issuance included five original bondholders.

The Piemonte Smart Bond is said to be priced on an “adjusted face value” basis aligned with the U.S. Dollar and Brazilian Real exchange rate. Furthermore, Horizon’s dynamic pricing service contemporaneously adjusts the bond’s U.S. Dollar market-value to apply the 3.50% annual coupon pro-rata from issuance date to accurately value the bond on the secondary marketplace.

Piemonte CEO Alessandro Lombardi said that in August the bond was tokenized and now they are offering a regulated bond marketplace on blockchain:

“Although this Smart Bond’s issuance was limited to qualified private investors, the Smart Bond was fully subscribed with zero distribution efforts made by Piemonte. We can only imagine the distribution and liquidity potential of future blockchain bond offerings once these competitive bonds are open to the general public.”

Piemonte says it has worked since 2017 to align its bond offerings with blockchain technology while adhering to the securities laws and regulations in Brazil.

Horizon also reported that it has recently launched its Series A funding round and is currently accepting investments.

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