Bitcoin and other cryptocurrencies have gained significant interest from conventional investors. This is a positive development, since it provides the sector with added credibility and a potential augmented user base.
But getting the attention from seasoned investors comes with its own stipulations.
For one, the cryptocurrency industry needs to make sure that it is meeting the trading and investment needs that these parties have grown used to in traditional markets.
Aspects such as stocks, bonds, other forms of equities and other financial instruments that traditional investors are accustomed to may not be readily present.
Thankfully, new players like Argento Access, provide new options for long-term investors with the deployment of Bitcoin bonds.
What is the Bitcoin Bond by Argento Access?
Based in Luxembourg, Argento Access is a securities management company that specializes in tradable assets. Under the leadership of founder Phil Millo, the firm has recently developed Bitcoin bonds.
Unlike other bonds that have their value tied to fiat, the Bitcoin bonds by Argento Access work completely through Bitcoin. This means that instead of having to calculate returns on the ever changing BTC/USD value, investors know exactly what they are getting in return of their Bitcoin investment. They can count their sats instead of their dollars.
Phil Millo and his team have ensured that the Bitcoin bonds work exactly the way that they state. That is why, they are being touted as a “Zero Fiat” product by the company to highlight its distinctive features from other assets.
How Does the Bitcoin Bond by Argento Access Work?
The lack of involvement of fiat in these Bitcoin bonds makes them quite a straightforward investment product.
Once purchased through Bitcoin, the Argento Access Bitcoin bond provides investors with monthly returns in the form of the cryptocurrency itself.
These bonds are fixed and don’t fluctuate based on day to day price changes.
The process continues until the maturity of the bond, at which point the bond’s face value is returned to the investor.
The longest duration to the bond’s maturity is 10 years.
But the maturity period comes in various options to give investors more flexibility.
The profits for these bonds are generated through carefully managed investment models. They are said to be free of fiat involvement. Since there is no need to assess or convert Bitcoin’s value in fiat, the investment in the form of Bitcoin remains safe right until the period of maturity.
Despite being free from the constrictions that fiat-based cryptocurrency securities have to face, the Bitcoin bonds remain a credible and recognized model. In fact, they are the very first Bitcoin-based securities that carry International Security Identification Numbers (ISINs). This also makes them trackable on the Bloomberg Terminal.
How Can I Buy the Bitcoin Bond by Argento Access?
The Bitcoin bonds by Argento Access can be purchased through LBX Trading, a London-based and FCA-registered entity.
Buying the Bitcoin bonds is a very easy process.
Once you have gone through the initial verification and vetting processes and completed the on-boarding process by LBX Trading, purchase a Bitcoin bond in a denomination that suits you.
Your investment is secured through the bond until the time of its maturity. And since the investment is trackable through the Bloomberg Terminal as well as other mechanisms, it remains completely secure.
Who Could Buy These Bitcoin Bonds?
Anyone from the world could apply to take part in these Bitcoin bonds. Since the asset is not as strictly regulated, it provides more accessibility and relaxation in the process.
Since the taxation on Bitcoin is mostly only done when it is sold in fiat for capital gains, the investment model also remains free of strict taxation laws. This adds to the overall value proposition of the asset and makes it all the more appealing.
Phil Millo and the team at Argento Access are part of the new group of pioneers stepping into this new frontier and making Bitcoin more accessible in various ways. They hope that these bonds would open doors to even further securities that are based completely on cryptocurrency.
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