Japan Firm Issues Bitcoin Bond as Experiment

Blockchain, FinTech, Innovation, Investing, News, Regulation | August 17, 2017 By:

Japanese financial information provider Fisco Ltd. has issued a bond denominated in bitcoins, testing the potential of bonds as a fundraising vehicle, according to Bloomberg News, which first reported the transaction.

Fisco issued a three-year bond worth 200 bitcoins to an undisclosed firm on Aug. 10, according to Masayuki Tashiro, the Fisco chief product officer. The notes were worth slightly more than $810,000 USD at the time of issue and will yield 200 bitcoins at maturity, a three-percent coupon.

The move, called an experiment in reports, is believed to be the first such issue in Japan. Fisco satisfied current regulatory requirements by designing the bond like a regular corporate note, Bloomberg reported.

“We expect that bitcoin will eventually be recognized as a financial product,” Tashiro told Bloomberg, referring to local laws governing financial instruments. The goal would be to earn fees from each transaction the firm oversees.

Japan legalized cryptocurrency on April 1 as a form of payment, and bitcoin purchases are now exempt from the nation’s sales tax. Companies are now experimenting with bitcoin as a means of payment for various items, including airline tickets, electronics, and snacks. Some major financial institutions have also initiated plans to use bitcoin for settlements and currency remittances.