Phaeton’s Bond Marketplace.
This exciting project is one of the first of many to be released, we anticipate that this will be finalised within the next month. It is now in its final stages of development. Below is an outline of the project and its specific features. We look forward to sharing more updates and milestones along the way.
The traditional banking and finance system is now challenged by financial technology (FinTech). There are many tech giants replacing banks and disrupting the legacy banking system. These companies are now offering financial services to consumers in a smarter way than the incumbent retail banks.
Examples of such services such as Apple Pay, Google Pay and PayPal. Millennials are embracing these technological developments as this generation is more gadget dependent than their older generations. Banks have the opportunity to cater to the new generation embracing FinTech innovation for more intelligent banking solutions.
One of the finance areas that Phaeton has evaluated is the Bond Finance sector. There are several Defi Blockchain start-ups, such as AAVE and Uniswap. These start-ups are focused on more consumer-driven products.
On the other hand, Phaeton has decided to work on the Bond market as it fits in line with Phaeton’s business philosophy, demonstrating how Blockchain Technology can be incorporated with intangible products that affect people’s lives.
Primarily, the scope of the Phaeton Bond Exchange platform is a marketplace where new blockchain bonds can be issued and traded conveniently and fluidly. It will provide access to both primary and secondary markets with bonds issued at an affordable level, allowing Millennials to enter the market.
In addition, the platform will focus primarily on Green Bonds as it ties into Phaeton’s policy of creating a positive social impact and its drive toward creating an ecologically sustainable planet for future generations.
The Bond Market
The bond market is often called the debt, fixed-income, or credit market. It is the collective name given to all trades and issues of debt securities. Governments typically issue bonds to raise capital to pay down debts or fund infrastructural improvements. Listed companies issue bonds when they need to finance projects, business expansion projects or maintain ongoing operations.
The bond market is segmented into two different markets: the primary and the secondary markets. The primary market is the “new issues” market, in which transactions strictly occur between bond issuers and bond buyers. Whereas in the secondary market, securities already sold in the primary market are bought and sold at later dates.
The primary functions of Bonds
Bonds represent the financing for long-term projects and innovations. For example, companies issue bonds to pay for acquisitions and large purchases instead of accruing debt from a conventional source. In addition, governments often fund costly infrastructure projects with bond investments. As a result, the bond market plays a significant role in ensuring financial stability for both investors and Issuers. When the stock market hits a correction, the bond market is a more stable fallback for generating wealth.
Phaeton Bond Exchange Platform
The Phaeton Bond Exchange Platform is a facilitator where third parties can market and raise capital for their projects in a regulated and formal process. The first step is for issuers to submit their proposed project, outlining details of their project together with a feasibility or financial study. A small fee will be charged. Phaeton’s Bond Approval Committee will then review their project before placing it on the Exchange Platform.
A formal agreement or contract will be signed between Phaeton and Issuer outlining the terms and conditions before the launch of their Bonds. Phaeton offers a Custodial service, where all funds raised, whether through cryptocurrency or Fiat, will be held.
The Custodian will issue the Bonds and transfer the funds to the Issuer. Transaction fees will apply for this process. A Rating Agency service will be offered to issuers. It is voluntary but recommended, especially for new issuers with no track record.
The Phaeton Team