Prime Nordic plc has launched a “first of its kind” digital STO bond that is fully tradable on a secondary market. Investors can buy and trade the Security Tokens on the European Digital Asset Exchange (EDSX), the decentralized peer to peer exchange for trading digital financial instruments.
The STO’s carry a fixed income of 5.25% per annum with interest accruing daily (5.39% AER), providing investors with predictable, forecastable returns. Investors can see the value of their investment grow on a daily basis, and they can either hold the Tokens until maturity (December 31st 2030), where they will automatically cash out, or alternatively offer their tokens for sale at any time through the EDSX platform.
The Tokens are legally binding, fool-proof smart contracts backed by the real time assets of the company, which in this case are the shares in 25 Nordic securities tracking the Prime Nordic Small Cap 25 Index. This provides a diversification to mitigate against unsystematic risk. More information on the components & performance of the underlying assets can be viewed here.
The product is suitable for professional investors and those who can self-certify to have knowledge and experience with financial instruments. Apply here EDSX website.