bond

The law firm Harneys and the tokenization platform droppRWA plan to issue the first catastrophe bond that directly records ownership on the blockchain, with the first trading target set for early 2027. This structure will make the blockchain a legally enforceable record of ownership, with investor registration, qualification review, and payment processes all placed within the same system, reducing reconciliation time from several days to seconds, provided that the necessary regulatory approvals are obtained.The catastrophe bond market is a $65.6 billion market that allows insurance companies, reinsurance companies, and government agencies to transfer natural disaster exposure to capital market investors. The tokenized asset market has nearly tripled in the past year to over $33 billion, and Citigroup expects this sector to reach $5.5 trillion by 2030. The second quarter of 2026 is projected to be the largest quarter in catastrophe bond issuance history, with 48 transactions issuing a total of $11.3 billion, and the Bermuda Stock Exchange accounted for 93% of global catastrophe bond issuance in 2025.To lower the investment threshold, investors will not directly purchase catastrophe bond notes, which typically have a minimum denomination of $250,000, but instead purchase beneficial interests in vehicles that hold the bonds and pass through the returns, with the minimum investment amount expected to drop to $5,000. The project is still subject to applicable regulatory requirements and approvals, and any platform administrator role must be licensed under Bermuda's Digital Asset Business Act 2018.

According to Cointelegraph, the global bond bear market continues to ferment, with Japan's 10-year government bond yield rising to 3% on Tuesday, the first time since 1996; the 30-year government bond yield also broke through the historical high of 4.18%. The U.S. 10-year government bond yield simultaneously rose to a multi-year high of 4.78%, and global long-term sovereign bond yields are at their highest level since the 2008 financial crisis.In this context, Bitcoin remains in a sideways consolidation, maintaining around $78,000, slightly retreating from an earlier high of nearly $79,000. There is a dense resistance area between the current spot price and $86,000, which limits Bitcoin's upward momentum. Market sentiment remains cautiously optimistic in the short term, with the $76,000 to $82,000 range seen as a key battleground in the coming weeks.This round of selling occurred after U.S. Treasury Secretary Yellen announced an increase in the upper limit of government bond repurchase transactions to $4 billion starting in September, with some commentators likening it to a form of yield curve control. Arthur Hayes has long argued that the Federal Reserve will eventually activate the FIMA repo facility, a mechanism that will create new dollar liquidity, which is also why he recommends allocating Bitcoin, gold, and cryptocurrencies; Yellen hinted at the future use of this tool as early as August.

MediaTek announced on the 31st that it has completed the pricing of $3.9 billion (nearly NT$125 billion) in overseas convertible bonds, bringing in funds from two AI giants, Nvidia and Google's parent company Alphabet. Nvidia accounted for $3.5 billion (about NT$110 billion), approximately 90% of the total amount, and announced that the two companies will deepen their cooperation in the future. This is the largest overseas convertible bond issuance in the history of Taiwan's capital market and also Nvidia's first investment in a Taiwanese company.According to a joint statement from Nvidia and MediaTek, Nvidia will purchase MediaTek's overseas convertible bonds. This investment expands the cooperation between the two parties, and MediaTek will use Nvidia's NVLink Fusion and Nvidia's recently released NVHBM technology to facilitate smoother communication of components in data centers. Nvidia's CEO Jensen Huang stated that the cooperation with MediaTek has "expanded significantly," making it one of the top partnerships; MediaTek's processors will become the foundation for the next generation of Windows PCs. MediaTek stated that this overseas fundraising attracted enthusiastic participation and subscriptions from long-term important partners such as Nvidia and Alphabet, as well as renowned international investors.

The yield on the 10-year U.S. Treasury rose to 4.75%, the highest level since January 2025.

Tether CEO Paolo Ardoino stated that stablecoins are a more trustworthy form of currency than tokenized bank deposits, the former being almost fully backed by U.S. Treasury bonds, while the latter typically only has 10% of liquid assets backing it. Pablo Hernandez de Cos, General Manager of the Bank for International Settlements (BIS), mentioned that stablecoins face issues such as redemption capability, supply, interoperability, and facilitating crime, and he referred to tokenized bank deposits as a more direct path to preserving the monetary system's foundation while utilizing tokenization.Ardoino pointed out that the market capitalization of USDT has exceeded $183 billion and is used by some emerging markets for domestic and cross-border commerce. In discussions surrounding the Digital Asset Market Transparency Act (CLARITY Act), banks are concerned that allowing cryptocurrency exchanges to provide incentives for stablecoins could lead to a shift in deposits.

Eurozone government bond yields rose in the morning, with the yield on Germany's 10-year government bonds rising to 3.276%, a 15-year high. Deutsche Bank stated that rising oil prices, increasing inflation in the Eurozone, and the European Central Bank's hawkish stance are driving yields higher.

Market expectations for the Bank of Japan tightening monetary policy are heating up, with weak demand for Japan's two-year government bond auction, the bid-to-cover ratio at 2.97, lower than last time's 3.63 and the past 12 months' average of 3.74. The tail difference is 0.034, higher than last month's 0.007, marking the weakest since 2016. The government led by Prime Minister Sanae Takaichi supports an interest rate hike as early as September, with overnight index swaps indicating a probability of about 84% for a rate hike in September.

According to TokenPost, Park Seung-jin, head of the Digital Asset Strategy Department at Korea Investment & Securities, stated in an interview with Yonhap Infomax that the company is preparing to move beyond fragmented investments in the token securities market and enter the tokenization of standardized securities such as stocks and bonds. If regulations allow, the company hopes to leverage its experience as an early entrant in the issuance of notes, IMAs, and other areas to become the first institution to enter this market.Park Seung-jin emphasized that even with significant first-mover advantages in the market, it is essential to prioritize discovering and supplying products that can win customer trust. The company will rely on the capabilities accumulated by its investment banking headquarters, project financing department, and investment products department to provide trustworthy products for investors. The Digital Asset Strategy Department started last year with a special task force and was officially established at the beginning of this year, focusing on token securities, stablecoins, and collaboration with Coinone.Korea Investment & Securities is entering the digital asset market by investing in Coinone shares. Park Seung-jin believes that the virtual asset sector should be led by trading platforms that are more familiar with the business, with both parties collaborating. Current collaboration has begun with providing domestic stock investment information from Korea Investment & Securities in the Coinone app, while simultaneously reviewing internal controls and security. The formal cooperation is expected to commence after the passage of the Digital Asset Basic Law currently under review in the National Assembly. The company is also paying attention to stablecoins, viewing them as a convenient payment method, and is researching solutions for settling other goods.

Virtu Financial, M1X Global, and Tradeweb have completed an on-chain repurchase transaction using the digital sovereign bond USDM1 issued by the Marshall Islands as collateral, with all settlements completed on the Canton Network within 10 minutes. The parties stated that this is the first case combining native-issued sovereign collateral with fully on-chain atomic settlement.USDM1 is a dollar-denominated sovereign bond issued on-chain by the Republic of the Marshall Islands, backed 1:1 by short-term U.S. Treasury securities, which continues to pay interest during the collateral period and is structured as a fully collateralized sovereign debt instrument under New York law. The bond is offered through the Tradeweb platform, with custodial services provided by Anchorage Digital, BitGo, and tZERO.Canton is a blockchain network designed for institutional finance, equipped with privacy and permission management features. Prior to this transaction, Tradeweb facilitated the real-time transfer of tokenized U.S. Treasury securities from Franklin Templeton to Virtu Financial on Canton in July. Since August, FalconX and Interstice have launched a cross-chain exchange engine connecting Canton with Ethereum, Solana, and Robinhood Chain, and World Liberty Financial has also natively issued the USD1 stablecoin on Canton.

U.S. Treasury yields rose slightly after the data was released, with the 10-year U.S. Treasury yield currently flat at 4.635%.

The dollar assets of Bitcoin Treasury Company Strategy have reached $6.69 billion, nearly equivalent to its $6.75 billion outstanding convertible bonds, with the net leverage ratio dropping to nearly zero. Driven by ongoing buybacks and the rebound of Bitcoin prices to around $80,000, its preferred stock STRC has rebounded over 35% since the low in June, currently reported at $97.23, still below the $100 par value.Executive Chairman Michael Saylor stated that USD Cash has enhanced the company's digital credit capital framework, specifically for the general purposes of Bitcoin Treasury Company, including increasing BTC holdings, paying preferred stock dividends and interest, repurchasing MSTR/preferred stock, repaying convertible bonds, and increasing dollar reserves. In May, Strategy repurchased $1.5 billion of convertible bonds maturing in 2029 to alleviate its debt burden.Competitor Strive Asset Management eliminated all debt earlier this year, and its preferred stock SATA has rebounded to the $100 par value, with shares issued last week through an ATM program. Analysts pointed out that eliminating debt will strengthen STRC's position in the capital structure, but ongoing buybacks, ample dollar liquidity, and the rebound in Bitcoin prices may provide more direct support for the preferred stock to return to par value.

Market news indicates that SoftBank Group is in discussions with investment banks regarding a potential bond issuance of $10 billion to $20 billion to help refinance its investment in OpenAI.

According to the Nikkei, Japan's Financial Services Agency, Ministry of Finance, Bank of Japan, and financial institutions plan to establish a research group in the summer of 2026 to promote the construction of next-generation payment and settlement infrastructure based on blockchain (distributed ledger), with a specific preparation plan expected to be formed in early 2027.The plan initially focuses on government bonds and stock trading, aiming to achieve 24-hour instant settlement of funds and securities. The report notes that although there have been several blockchain financial application trials in the past, this is the first time the Japanese government and central bank have set a clear timeline for the actual implementation of related infrastructure.

According to Reuters, India plans to issue its first tokenized bond in September, issued by the state-owned power financing company REC, with an issuance scale expected to be below 5 billion rupees (approximately 57 million USD). Indian market regulators and the central bank are jointly promoting the relevant pilot project, and the bond issuance and settlement will utilize blockchain technology.Sources say that the product is expected to be launched during the annual fintech conference in Mumbai in September, initially targeting a limited number of investors. Investors will participate through wholesale central bank digital currency (CBDC) wallets and electronic securities wallets. Indian depository institutions are developing an electronic wallet named DEMT 2 to record bond holdings via a distributed ledger.The initial term of the bond is three months, and subsequent trading will be limited to participants who simultaneously hold compatible CBDC and securities wallets. A secondary market for tokenized bonds is expected to form by December, and it will not be traded on traditional electronic trading platforms.

Billionaire investor Stanley Druckenmiller stated that the decision by Besant to spend billions of dollars to buy back U.S. Treasuries is a wrong decision. He believes that the market aggregates information that no committee can possess, and prices are the way information is conveyed to decision-makers. Druckenmiller pointed out that the Treasury's attempt to influence the bond market lacks rationale, and the current financial environment is in a loose state.

According to CNBC, two senior officials from the U.S. Treasury revealed that the Treasury may utilize a fiscal general account (TGA) close to $1 trillion to fund its recently announced expansion of the government bond purchase program. Using the TGA account will give the Treasury greater ability to influence long-term bond yields.Last week, the U.S. Treasury unexpectedly announced that it would increase the repurchase scale of long-term "off-the-run securities" from $2 billion to at least $4 billion. U.S. Treasury Secretary Yellen stated that the scale of such operations could even exceed this new minimum level. However, the Treasury did not specify how it would fund these purchases at that time.Most market participants previously believed that the Treasury would raise funds by increasing the issuance of short-term Treasury bills. If the TGA account is utilized, the market's perception of this plan may change.The TGA is essentially a "checking account" that the U.S. government has with the Federal Reserve, similar to an emergency fund pool for the government. The funds in this account come from existing tax revenues.