INVAO has completed the Token Generation Event for the IVO Blockchain Diversified Bond and has provided the software to the public on GitHub. The token lives on the Ethereum blockchain and is a fully digitized security.
Liechtenstein-based Blockchain Investment Manager INVAO has completed the Token Generation Event of its IVO Blockchain Diversified Bond (ISIN: LI0471823018), the world’s first-ever bond issued on the public Ethereum blockchain. The security token is going to set “a new standard for blockchain-based financial products,” says Frank Wagner, CEO at INVAO Group.
The IVO Bond is based on a diversified portfolio of blockchain assets. It is actively managed by INVAO’s portfolio experts and invests in up to 60 selected blockchain assets at a time. INVAO’s portfolio has achieved a return of 108 percent in the first half of 2019 and has outperformed both Bitcoin as well as its benchmark index, the CCi30, according to a press release.
The completion of the Token Generation Event on 27th September 2019 was a milestone in the company’s development, says INVAO. The firm had recently raised about half of its STO target volume of 20 million US-dollar and is now ready to distribute the tokens to its investors.
The IVO token software is open-source and available on GitHub
All units of the IVO Token were created on the public version of the Ethereum blockchain. IVO differs from other blockchain-based bonds because it is not a hybrid form of tokenized and traditional paper-based security, but a fully digitized bond.
Frank Wagner explains, “Our IVO – Blockchain Diversified Bond does not only grant ownership rights of a traditional Bond. IVO lives on the Ethereum blockchain and is only available in the form of a digital token. On the contrary to other blockchain-based bonds, we are the first issuer that does not provide any paper-based bond certificates. Being fully digitized, IVO sets a new standard for blockchain-based financial products.”
INVAO went open-source, making the token structure and its mechanics accessible on GitHub.Other developers may use the software through a GNU-license for their own projects. The token was programmed by Validity Labs in the city of Zug (Switzerland) and audited by MonteLabs in Savosa (Switzerland).
Wagner says the company decided to provide the coding of the IVO Bond to the public as open-source software, because “blockchain-based digitization of financial products has enormous future potential.”
INVAO came to Liechtenstein in search for legal certainty
INVAO has recently received significant international media attention. The company is considered a pioneer in blockchain investment management and has built up a global presence with offices in Berlin and Dubai.
Like many other blockchain firms, INVAO has chosen Liechtenstein as a base because of its blockchain-friendly regulations. “Risk management and investor protection are the key value proposition of INVAO,” explains Frank Wagner. “Our investors can expect the highest standard of professionalism. Liechtenstein has created legal certainty by introducing the Blockchain Act. That was the main reason why we decided to set up shop in the country.”
The prospectus of the IVO token was accepted by the Financial Market Authority Liechtenstein earlier this year. It has been passported to other countries and INVAO has signed cooperation agreements with several exchanges to list the IVO token for trading.
The tokens themselves are stored by Berlin-based digital asset banking firm Finoa, which has developed an institutional-grade custody solution for blockchain assets, compliant to PSD2 and EBICS regulations.