FIC Network Announces First Corporate Bond issued on Blockchain
Technology provider makes pioneering move toward rebuilding fixed income market infrastructure
October 31, 2018; BERMUDA and DUBLIN, IRELAND — FIC Network, a blockchain technology provider for the fixed income market, has launched its mainnet and recorded the first privately placed corporate bond on its platform. This is one of the world’s first corporate bonds issued on the blockchain.
This inaugural transaction is FIC’s first step toward simplifying, streamlining and rebuilding the infrastructure for the entire fixed income market. With its blockchain-powered web platform, FIC will enable the listing, settlement, and redemption of any type of fixed income instrument (including corporate bonds, asset-backed securities and hedging instruments). Designed as an institutional-grade platform, FIC Network will deliver significant cost savings through a completely digital, blockchain-based process, from issuance to redemption.
FIC’s infrastructure delivers significant value to all fixed income market participants through:
- Instant settlement with Delivery Versus Payment (DVP) built into its blockchain protocol
- Reduced costs through encoding, automation and standardization of trade and legal documentation, bond management, and servicing
- Enhanced cryptographically secure blockchain using the Stellar Consensus Protocol
- Digital custodianship to facilitate the direct control of assets by issuers and investors
FIC Network provided the technology for Capstone Intelligent Solutions to issue its privately placed, one-year, US Dollar denominated bond to investors. LK Shields acted as legal advisor.
The bond was recorded by the parties using FIC Network’s blockchain infrastructure, the open-source FIC wallet, FIC coins, and the FIC business platform.
Factury Inc., the parent company of FIC Network Ltd., was founded by Arturs Ivanovs in 2016. Prior to founding FIC Network, Ivanovs worked in implementing EU credit market regulation in Latvia. He became professionally involved in blockchain technology in 2015.
Arturs Ivanovs says, “FIC and its technology will enable the democratization of the fixed income market and increase access to capital for small and medium sized businesses. The issuance of this bond is the first step toward rebuilding the infrastructure for the entire fixed income market. Our institutional grade platform enables easier and more efficient issuance, management, trading and settlement of fixed income instruments for all market participants. It ultimately delivers cost savings through a completely digital blockchain based process and by minimizing back office operations. We look forward to supporting all fixed income market participants with our suite of cutting edge technologies.”
Fergus Kelly, the Founder and Managing Director of Capstone Intelligent Solutions Limited says of their bond issuance, “Capstone is a growing communications technology innovator. When looking at funding options, we were immediately drawn to the idea of a bond issue managed on the blockchain. We chose FIC Network for its instant settlement, reduced transaction costs, and automation of coupon payments back to coupon owners. We are delighted to work with FIC to help in funding our expanding global capabilities.”
Adam Draper, Boost VC Managing Director and a seed round investor in FIC Network, says, “This first bond issue is a validation of the FIC Network vision and we are delighted to see them achieve this milestone. We were early backers of Arturs and his team and believe in the massive opportunity to improve the fixed income market.”
About FIC Network
FIC Network Limited is an affiliate of Factury Inc., a blockchain fintech company developing infrastructure for the fixed income market. The company is backed by leading blockchain and fintech venture capital firms Boost VC and Bialla Venture Partners, and it was a global top 10 pick at Startupbootcamp Fintech NY. The company has offices in Bermuda, New York City, NY, Philadelphia, PA and Riga, Latvia.
About Capstone Intelligent Solutions
Capstone is a global communications technology company, who help their clients navigate a sound course in a sea of technology. They work with some of the world’s best-known communication technology brands as well as a host of innovative emerging providers to design and deliver their clients complete, integrated and scalable unified communications, contact center and collaboration solutions. Capstone’s award-winning team of technology experts supports the national and international needs of its clients from offices in the US, UK and Ireland. Capstone clients include Marriott Hotels, Three Mobile and Paddy Power Betfair.
About LK Shields
LK Shields is a leading Irish and international corporate and commercial law firm servicing enterprising businesses, financial institutions and public bodies. The LK Shields FinTech Team combines the experience of our market leading Corporate, Financial Services, Investment Funds, Technology, Data Protection and Intellectual Property practices to offer integrated, full service legal solutions involving new technologies such as blockchain.
Media Contact
Pace Public Relations
Meghan Powers
meghan@pacepublicrelations.com
