Democratizing Access to Corporate Bonds

Bondi Finance is a Real World Asset tokenization platform that democratizes finance by tokenizing emerging market bonds. The crypto space currently offers limited options for stable, high-yield investments, while traditional barriers prevent most investors from accessing emerging market corporate debt. Bondi enables retail investors to earn yields from real companies through blockchain technology.

Market Challenges

For Investors

DeFi lending markets offer fluctuating yields, while tokenized treasuries remain largely restricted to qualified investors with minimal returns. A significant gap exists in the market for accessible, stable yield opportunities.

Emerging market companies typically pay higher yields on their debt compared to US counterparts, while maintaining historically lower default rates. However, minimum investment amounts for these bonds typically range from $100,000 to $200,000, excluding most retail investors.

Traditional brokerages attempt to address high minimum investments by purchasing bonds and selling fractionalized portions over-the-counter. However, access to these opportunities often depends on strong personal relationships with the brokerage, and minimum ticket sizes remain prohibitively high—typically requiring $50,000 or more.

For Companies

Corporate financing choices significantly impact business outcomes. Bonds offer companies distinct advantages over traditional bank loans, including longer-term financing at lower interest rates.

Key Advantages:

• Average corporate loan terms: 7 years vs. bond maturities: 10 years
• Secured loans to non-investment-grade firms carry interest premiums of 1.4%–1.7%
• Access to broader capital pools beyond traditional bank lenders
• Enhanced financial resilience during economic crises

Following the 2008 Financial Crisis, bond issuance increased substantially in emerging markets. Bonds served as alternative financing when banks reduced lending—loans to large borrowers fell 79% during the crisis. A developed corporate bond market reduces systemic risk and provides companies with greater financial flexibility during economic downturns.

Market Opportunity

Emerging markets continue their economic development while Real World Asset tokenization gains momentum. Corporate bond financing is expanding in debt markets, and tokenized assets are projected to become a multi-trillion dollar industry. Tokenization accelerates market efficiency by reducing traditional barriers and improving accessibility.

Benefits of Tokenization

Fractionalization: Tokenized bonds can be divided into smaller amounts, making them accessible to a broader range of investors.

Enhanced Liquidity: Tokenized bonds demonstrate higher liquidity with bid-ask spreads 5.3% lower than conventional bonds. This liquidity advantage can increase to 10.8% when bonds are accessible to retail investors.

Expanded Investor Base: Fractional ownership and continuous trading capabilities attract diverse investors, including retail participants previously excluded from these markets.

Transparency: Blockchain technology records all transactions, providing transparent and immutable ownership and transfer records.

Automation: Smart contracts automate issuance, interest payments, and principal repayments, reducing manual processes and minimizing operational errors.