The London Stock Exchange Group (LSEG) has led a $20 million investment round in fintech startup Nivaura, Reuters reported on February 27. According to the report, the British blockchain startup is the developer of the world’s reportedly first crypto-denominated, blockchain-settled bond.
The startup, called Nivaura, enables financial instruments to be settled on existing clearing infrastructure, or as digital tokens that are recorded on a public blockchain. The head of international development at LSEG, Nikhil Rathi, told Reuters that the exchange was seeking to leverage technology to develop new products, boost efficiency and support growth. The company then paid an undisclosed amount for a minority equity stake in Nivaura.
Another notable company that has invested in Nivaura is Santander InnoVentures, Banco Santander’s venture capital arm.
One of Nivaura’s biggest selling points is its ability to dramatically reduce the costs of raising capital. According to the company, tokenizing debt and equity allow it to cut processing time for financial instruments by up to 80 percent. Nivaura’s platform is a completely modular solution, the company said, and it facilitates the automation of the entire lifecycle of a financial instrument. The platform also allows issuers to “easily access the financial markets and can connect into existing technology platforms such as the clearing systems or into blockchain infrastructures.”
Back in 2017, the company issued the world’s first Ethereum (ETH)-denominated, blockchain-settled bond. Nivaura operated under the aegis of the U.K.’s Financial Conduct Authority’s regulatory sandbox, ticking all the boxes when it came to legal and regulatory issues involved in tokenizing capital markets.