Cryptobond (Debt security) | Definition of Cryptobond

What is cryptobond?

 

A cryptobond (similar to traditional bond) is a debt security in which an investor loans cryptocurrency, such as Bitcoin, Litecoin, etc., to an entity such as financial institution, governmental body or other organizations. Entities borrow cryptocurrency for a specific period of time at a variable or predetermined interest rate.

Cryptobonds are used by entities to raise cryptocurrency and finance/invest in variety of projects and activities such as launching/expanding product or services.

The term “cryptobond” is first coined and defined by Mohith Agadi.

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