One feature that the Open Investment Exchange is offering that is exclusive to the platform is the Government Blockchain Bonds. This essentially means that any government body can go ahead and issue bonds on our platform and find buyers from across the globe. This is a great opportunity for cities, states/ provinces and federal government to come up with the money to fund infrastructure and technological plans.
Let us take the example of a city like Raleigh. It is a city that is growing and can do wonders with a rapid public transport that would sustain the growth and maybe include a couple of suburbs in its growth story. In order to fund the project the city can create an independent body and issue city bonds/municipal bonds to raise fund. Since the investment is in infrastructure project and is backed by a growing city, the funding will come from various stakeholders like citizens, incorporations from the city and even from investors who would feel safer investing in government bonds than blockchain tokens.
While most exchanges are looking at equity securities, the debt market is also a great match with blockchain technology. The global bond market exceeds $100 trillion, while the stock or equity market is worth roughly $64 trillion. In terms of daily trade volume, $700 billion in bonds contrasts with $200 billion in stocks. Traditionally, debt securities have been safer investments than equity securities.
This is also a great opportunity for cities and states in developing nations to further strengthen the infrastructure and attract more investment in the city. This is a phenomenon that has the potential to change the way blockchain investment is done. More information on this will be released soon as a concept paper on our website.