Breaking Borders: Max Boonen Brings $5M Treasury Bill to Blockchain, Sets Sights on Corporate Bonds Next!

• PV01 has successfully conducted a proof-of-concept issuance of a tokenized bond, specifically a U.S. treasury bill, with the support of market makers B2C2, BlockTower Capital, and Keyrock.

• The tokenization of real-world assets, such as bonds, has gained significant traction in the blockchain industry.

• According to Max Boonen, CEO of PV01, the company aims to facilitate a tokenized corporate bond sale for a prominent cryptocurrency organization in the upcoming months.

PV01, a tokenization company founded by the creators of crypto market maker B2C2, has successfully completed its first tokenized bond sale under English law. This marks a significant step towards PV01’s goal of creating a bond market on blockchain, including corporate debt.

The issued asset was a tokenized version of a single U.S. Treasury bill worth $5 million, which was issued on April 8 and redeemed a week later. B2C2, BlockTower Capital, and Keyrock were the investors in PV01’s “proof-of-concept” issuance.

PV01, based in Bermuda, emerged from stealth mode a year ago under the guidance of Max Boonen and Flavio Molendini, the founders of B2C2. It is in competition with other companies in bringing real-world assets (RWA) like Treasuries and bonds to blockchain, aiming to make transactions faster, cheaper, and more transparent. According to 21.co, a digital asset manager, tokenized RWAs could reach a staggering $10 trillion as more conventional financial institutions adopt blockchain technology.

Bringing debt markets onto the blockchain could have possibly prevented the credit crisis that occurred in the crypto industry in 2022 with the downfall of hedge fund Three Arrows Capital (3AC) and lender Celsius Network. According to Max Boonen, PV01’s co-founder and CEO, public ledgers would reveal the amount of debt accumulated in the system and who owes it to whom, providing more transparency.

Over the past year, the tokenized Treasury market has experienced significant growth, surpassing a total value of $1 billion. It now has a new entrant, asset management giant BlackRock, who joined the competition with Securitize.

What sets PV01 apart from its competitors is that their token represents the actual bond, and the entire asset lifecycle takes place on-chain. In contrast, most competitors create tokens as wrappers of a money market fund. PV01’s approach eliminates an intermediary layer in the tokenization process, which is vital for their future plans to extend to corporate bond tokens issued entirely on-chain, as explained by Boonen.

The tokens are transferable between buyers and sellers, allowing for trading and price setting on secondary markets without the need for redemptions.

“Market makers are eager to provide over-the-counter liquidity for the Treasury bond tokens, as one of their primary goals is to use the tokens as collateral for their trading activities,” added Boonen.

Following the successful completion of its first issuance, PV01 plans to scale its tokenized Treasury offering in the short-term and ultimately extend to corporate bond issuances.

“In the next few months, we aim to conduct a tokenized corporate bond sale for a well-known crypto player,” stated Boonen.