UK[based Nivaura has developed an Ethereum blockchain-based service to make raising money simpler and cheaper. This could transform how businesses attact investor funds. In March, Nivaura registered, cleared and settled two Principal Protected Notes (PPN) linked to the FTSE 100 - one through the traditional clearing infrastructure and a second using an open public blockchain.
In November 2017, Nivaura initiated its first bond denominated exclusively in ether. The first-of-its-kind instrument was issued by London-based luxury retail startup LuxDeco and created with the help of industry leaders to give the company a new way to raise capital for short-term seasonal demand. JPMorgan, Allen & Overy and Moody’s helped with Nivaura’s bond issue, which had a week-long maturity and paid 10% annual interest – a premium was added to manage volatility in the currency.
The bond is cleared, settled and registered on the public ethereum blockchain. With a relatively short lifecycle of only one week, it is also part of a larger experiment to see if such investment vehicles can be made more accessible to small businesses on a massive scale.