BondEvalue officially graduated from the MAS’ regulatory sandbox on 1 October 2020, the company said in a release.
Some time ago Rahul Banerjee, a former banker of Standard Chartered Bank launched BondEvalue, a Singapore-based fintech that operates the world’s first blockchain-based bond exchange called BondbloX Bond Exchange (BBX).
“Getting the MAS’ greenlight is a big deal for us,” said Rahul Banerjee, founder and CEO of BondEvalue. It will help to accelerate engagements with potential partners.”
It aims to bring trading of a wide range of fixed-income securities to the mass market across the region.
“The move means that BondEvalue has successfully concluded proof of technology and business model,” the company said. It is now no longer bound by restrictions such as limits on trading volume and disclosures specific to the sandbox model.
A sandbox is a regulatory construct which provides fintech players with a faster option to test innovative financial products and services in the market under regulatory scrutiny.
BBX allows for bonds to be traded in smaller sizes of US$1,000 unlike typical bond trades of at least $200,000. This leads to better access and better diversification opportunities for a market that is typically inaccessible except to more wealthy investors, according to the company.
The blockchain technology makes trading highly transparent and more cost-effective. Settlement on BBX is on a T+0 basis, that is within seconds instead of the normal two-day settlement cycle, thereby reducing counterparty settlement risks for investors.
“Our vision of extending bond trading from Wall Street to Main Street is becoming a reality,” said Banerjee.
BondEvalue’s Initial Launch Partner UOB Kay Hian, part of the UOB Group and one of Asia’s largest brokerages, and its first member, multi-family office Taurus Wealth Advisors, will ramp up to bring more investors to the platform.