Japanese firm Fisco Ltd revealed this week that it is launching a new Bitcoin-denominated bond. The financial information provider announced that its digital currency exchange unit has issued a total of 200 Bitcoins for an initial internal trial of the new bond. According to details provided by Fisco, bond holders will enjoy a three-percent annual return, and will be able to redeem matured bonds for Bitcoin.
According to reports, the companyis decision to pursue these bonds is motivated by several factors. Like many in Japan’s financial industry, Fisco anticipates that the Japanese government will eventually provide full legal recognition of Bitcoin as a valid financial asset. This move could help the company to position itself to take advantage of that development when it happens. According to Fisco’s chief product officer, Masayuki Tashiro, Fisco also wants to determine whether these bonds can be useful for fundraising efforts.
Coinbase’s Adam White offered his assessment in an interview with CNBC. Noting that he sees this as a “healthy and natural progression of the space,” White asserted that derivatives will provide Bitcoin with important benefits like reduced volatility and improved liquidity. He also sees it as a positive thing for traders:
"I think products like derivatives or an ETF effectively allow traders to do two things: speculate and hedge risk on the price speculation."