BitMEX Bitcoin (BTC) Bonds – Joe Zoe
BitMEX, the largest Bitcoin margin trading platform, is planning to become the major player in the Bitcoin fix income market. Bitcoin fixed income market has enormous growth potential and the most reputable crypto exchanges, miners, and other market participants that generate revenues in Bitcoin will most likely be issuing Bitcoin debt instruments in the future. Those institutions have well established reputation and more inclined to pay back the Bitcoin unlike retail borrowers on lending platforms.
BitMEX considers issuing a 30-days Bitcoin zero-coupon bond. The more accurate definition of this debt instrument is a commercial paper, which is typically issued by large banks or corporations in the traditional financial system to meet short-term financial obligations. Yields on commercial paper vary according to the creditworthiness of the issuer. Other corporations, financial institutions, and money market funds are usually buyers of commercial paper.
Commercial paper is an unsecured, short-term debt instrument that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the paper is redeemed for its full face value. For example, a 30-days Bitcoin zero-coupon bond issued by BitMEX with the face value of 10 Bitcoin (BTC)s could be offered for 9.9 Bitcoin (BTC)s, providing 1% interest yield. The exact rate will be determined based on the BitMEX financial position and will also be reflecting prevailing market interest rates.
Based on material provided by BBSB website.
Bitcoin Margin Trading. Up to 100x Leverage.
Published at Tue, 06 Aug 2019 22:50:03 +0000
Bitcoin Pic Of The Moment
BTC ATM
in front of a Chase bank
Austin, TX March-2014
By maltman23 on 2014-03-19 14:14:00