The corporate bond market, worth over $40.9 trillion, has been mostly out of reach for regular investors. Selling investments quickly is often challenging and relies on big financial companies. However, this vital part of the world economy is ready for change.
Credefi Finance aims to change things with its new NFT Bonds. These bonds use blockchain technology to make corporate debt more open, easier to trade, and available to more people, with recent developments in this field specifically.
Why Credefi NFT Bonds Are a Game-Changer
Credefi NFT Bonds are like regular company bonds but can be better because they can give more people access to investing and change how we think about steady income investments. Regular company bonds are essential, but they have problems.
Moreover, only big investors usually use them, so regular people can’t. Selling them quickly is hard, so investors must wait a long time. Plus, it is not always clear how the deals work because many people are involved.
Credefi NFT Bonds fix these problems and change how bonds are used; below are key changes Credefi offers.
- One significant change of Credefi NFT Bonds is that anyone can buy them. Regular bonds are usually only for big investors, but NFT Bonds are for everyone. This means more people can invest, and the world of finance can be fairer.
- Credefi NFT Bonds are easier to sell. You can sell them quickly on markets, which gives investors more freedom. Regular bonds are hard to sell fast, so you have to hold them until they mature, even if things change. With NFT Bonds, investors can handle their investments better.
- Credefi NFT Bonds are clear. Blockchain technology ensures that all deals are stored safely and everyone can see them. Fewer people are needed to make deals, which makes things more reliable and easier. Because everything is clear, investors can trust the system and make better choices.
- Besides being easy to access, sell, and understand, Credefi NFT Bonds can also be used as collateral. Regular bonds are not easily used with new money systems like DeFi, but NFT Bonds can. This means investors can use their bonds to get loans, earn more money, and try other new things in DeFi, making their investments even better.
- Credefi NFT Bonds settle quickly. Regular bond deals can take days, which wastes time. But NFT Bonds settle immediately on the blockchain, making things faster and safer. This quick settlement helps investors use their money and get their funds faster.
Credefi Launches NFT Bonds in Europe
Credefi has launched its NFT Bonds on the Polytrade Marketplace to take its newest product to the mainstream audience (some countries might be restricted due to standard limitations).
This new product allows DeFi users to invest in small, tradeable pieces of debt backed by real-world assets designed to provide steady returns.
Available on Polytrade, a well-known marketplace for Real World Assets (RWA), Credefi’s NFT Bonds offer a 22% annual return. Each bond is supported by over $750,000 in real-world assets, giving investors extra security.
Furthermore, these bonds provide payouts every three months and mature in 12 months, allowing users to invest in fixed-income-style products within the DeFi world.
Credefi’s NFT Bonds are a big step forward for the RWA sector. They combine the accessibility of decentralized markets with the stability of real-world lending.
Investors can earn passive income from tangible assets in the European Union by basing bonds on secure loans to small and medium-sized businesses in the bloc.
This also lowers risk because tangible assets back the bonds. This new way to invest in corporate debt could change the investment world, empowering individuals and making financial markets more inclusive.
What Are Credefi NFT Bonds?
Credefi NFT Bonds is a new idea that turns company bonds into digital tokens on the blockchain. This is a good alternative to regular bond markets, making things easier and creating new opportunities for investors and companies.
Credefi NFT Bonds are token versions of company debts. Using the non-fungible token (NFT) standard, each bond is made into a unique digital item.
This ensures ownership can be checked and removes any confusion that can come with regular bond papers. This uniqueness is essential for building trust and openness in the DeFi world.
How Credefi NFT Bonds work is meant to make things more efficient and easier to use.
How they work:
- Firstly, when a bond is created, it becomes a special NFT permanently saved on the blockchain. This record proves who owns the bond.
- The system automatically sends coupon payments to the bond owner’s digital wallet. This removes the need for intermediaries, like custodians, cutting costs and speeding up payments.
- These bonds can be easily traded on NFT markets, which makes the market more active and easier to use than regular bond trading. This makes it easier for investors to manage their investments.
- Besides just trading, Credefi NFT Bonds open up more possibilities in DeFi. They can be used as security in lending systems, allowing for more complex financial plans without the unstable nature of many crypto assets. This lets investors use their bonds to earn more money or participate in other DeFi activities.
What is Credefi?
Credefi is a European platform that offers a simple lending system based on real-world items. Its main goal is to link crypto lenders wanting steady returns with trustworthy small businesses that need funds.
Credefi’s new method connects crypto lenders with small businesses through loans with assessed risk. These loans are backed by accurate items like property, lowering risk and offering security that is often missing in the unstable DeFi world.
This backing protects lenders against defaults, boosting trust and creating a more stable investment space. The platform’s promise to provide fair financing goes beyond just making money.
Moreover, by helping small businesses access capital, Credefi aids real economic growth. Small businesses are key to many economies, and funding is vital for their development and for creating jobs. Credefi’s platform opens a new way for these businesses to get the funds they need to succeed.
Credefi is dedicated to openness, security, and new ideas and undergoes regular checks to ensure its operations are sound. The platform also uses Experian checks to improve borrower credit checks, giving lenders extra security. This focus on careful checks shows Credefi’s promise to create a safe environment for everyone involved.
What is Credefi’s Market Potential?
Credefi is strategically establishing itself as a frontrunner in the on-chain corporate bond sector, focusing on a market segment characterized by trillions of dollars in capital yet plagued by inefficiencies.
Current Market Position:
- A robust user base of over 4,000 active participants on the Credefi platform.
- A well-performing $4 million portfolio boasting a flawless record of zero defaults and over $500,000 successfully repaid.
- Funding was provided to more than 30 SMEs, showcasing tangible real-world adoption and impact.
Growth Projections:
- An initial bond issuance target of $6 million, secured by the backing of three reputable financial institutions.
- A projected market expansion goal of reaching $100 million within the subsequent 24 months.
- The introduction of a secondary market dedicated to NFT Bond trading was designed to enhance investor accessibility and liquidity.
By tokenizing corporate bonds, Credefi unlocks novel opportunities within the growing world of real-world asset (RWA) tokenization, effectively democratizing access to institutional-grade financial products for a wider audience.
Conclusion
Credefi Finance is changing the corporate bond market with NFT Bonds. These use blockchain to make things easier to access, more flexible, and open.
By turning company debt into tokens, Credefi lets more people invest. This makes trading simpler and transactions clearer and allows for use as backing in the DeFi world.
With a strong place in the market and plans for growth, Credefi is set to reshape the usual bond market and give more people access to high-level financial tools.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
