LABRYS are building the platform to radically change the way individuals and institutions invest in bonds. Built on Ethereum, the Labrys Platform will utilise the benefits of blockchain to forge the most efficient investment gateway to the worlds' largest market, the global debt-capital market. Through the advent of cryptographically secure yet transparent digital tokens, it is now possible to completely digitise and eliminate middlemen by creating tokenized bonds using smart-contracts (smart bonds), establishing a direct relationship between bond issuer and investor. The Labrys Platform will be utilised by companies to issue smart bonds where investors will obtain ownership and receive regular interest payments through the client-controlled Labrys Wallet.
The Labrys Wallet
The Labrys Wallet is the tool to gain ownership of blockchain based bonds. It is the gateway to all communication with the underlying Ethereum smart contracts, which secure the investments. Users will manage their own bond portfolio from within the Wallet which includes the buying and selling of bonds and collection of interest payments.
Benefits to tokenising bonds
Representing bonds using cryptographic blockchain tokens allows for process automation and efficiency at scales never witnessed before. It becomes possible to remove multiple intermediaries along the journey a bond makes from issuing entity to purchaser (investor). As each of these intermediaries must take a small percentage cut along the way, the investor ends up paying high premiums to purchase these bonds while the issuer is subject to unnecessarily long processing times.
By tokenizing bonds, Labrys are able to provide the following benefits:
- User's can become their own bond broker, buying and selling bonds on their own terms
- Processing time from initial issuance to end purchaser is greatly reduced thanks to an automated smart-contract interface
- Costs to issue bonds reduced significantly decreases by eliminating the need for brokers in the traditional sense, enabling the passing on of higher average interest rates and thus greater returns on investments
- Users with active investments always maintain complete control and ownership of their funds, removing the need to trust a third party with this control
- Completely frictionless, funds under investment are free to be withdrawn and traded throughout the cryptocurrency ecosystem
- Transparency and accountability become built in features and not luxuries as all information and history are permanently recorded on the underlying blockchain
- Simplicity, an easy to use mobile app will be all that's needed to manage one's entire bond portfolio
The Labrys platform provides value to three types of investors:
- Small Scale Investors: Bonds are an incredibly hard investment to access for small scale investors. They are shrouded in complex regulations / paperwork and minimum investment sizes typically price everyday investors out of the market. Labrys will automate the investment process using blockchain technology to provide everyone access to bonds.
- Cryptocurrency Holders: Labrys provides an opportunity for both large and small cryptocurrency holders to receive interest on their cryptocurrency without converting it to fiat.
- Institutional Investors: Tokenised digital bonds will build the foundations for a more efficient and cost-effective bond market. As financial institutions and investors inevitability look to adopt this technology they will seek a platform capable of catering to their needs. Institutional investors will look to the Labrys platform as the basis for future bond market investment.