Lombard Odier bought its first bond entirely on blockchain. The deal could be the first of many to cut out the middleman – investment banks.
The Swiss bank's investment arm said it bought a $15 million catastrophe bond using blockchain. Lombard Odier said the deal is among the first secondary market transactions completed on blockchain.
The distributed ledger technology meant the deal was cheaper and far faster than a traditional investment bank-brokered bond sale. Lombard Odier bought a bond issued last year by Solidum Partners, issued in August privately on blockchain to several investors.
«We have learned more about using the technology and the more practical aspects that needed to be handled, not least legal and compliance to name a few,» Lombard Odier tech chief Stéphane Rey said.
