London’s Marex Solutions has created a structured product that was registered, cleared and settled using blockchain technology. The two-month, pound-denominated notes pay a coupon of up to 13 percent per year based on the performance of the FTSE 100 Index, according to its term sheet.
Marex declined to say how much was sold to retail investors in the private placement on Friday. The news was first reported by Bloomberg.
Structured products are obscure financial tools used mainly by investment banks. Regulators have typically cast a wary eye on them, but they generated $25 billion last year. As with many financial transactions, using blockchain for structured products would eliminate the need for a host of middlemen taking cuts in settlements and speed transaction times.
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