How does the use of ERC-20 tokens and smart contracts impact the liquidity and accessibility of bond markets?

1 answers

• Sabrina Eymard-DuvernayApr 18, 2021 · 4 years ago
  At BYDFi, we believe that the use of ERC-20 tokens and smart contracts has a transformative impact on the liquidity and accessibility of bond markets. By leveraging blockchain technology, bonds can be tokenized into ERC-20 tokens, enabling fractional ownership and easy transferability. This increases liquidity as investors can buy and sell bonds in smaller denominations, attracting a larger pool of potential buyers. Smart contracts automate the execution of bond transactions, reducing counterparty risk and improving transparency. This makes bond markets more accessible to retail investors who can participate in bond trading without the need for intermediaries. The use of ERC-20 tokens and smart contracts also opens up new opportunities for innovative financial products and services in the bond market. Overall, the adoption of ERC-20 tokens and smart contracts revolutionizes the bond market, enhancing liquidity and accessibility for all participants.
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