A New Way to Earn

Bondi Finance is Real World Asset tokenization platform set out to democratize finance by tokenizing emerging market bonds. Currently, the options for stable, high-yield investments are limited in the crypto space. Meanwhile, the barriers for investing in emerging market firms are high. We are dedicated to allowing the average Joe and Jane to earn high yields paid by real firms.

There are Problems to be Solved

For Investors

Lending markets offer fluctuating yields, and tokenized treasuries are mostly limited to qualified investors while yielding minimal returns. There is a gap to be filled in the industry. Emerging Market firms pay higher yields on their debt compared to their US counterparts, whilst having historically lower default rates. Sounds like a good investment, right? The issue is, minimum investment amounts of these bond typically range between $100,000 to $200,000.

Traditional brokerages claim to solve the issue of minimum bond investment amounts by purchasing bonds and selling fragmented parts over-the-counter. However, access to these opportunities often relies on strong personal relationships with the brokerage. Even then, the minimum ticket size remains prohibitively high, typically requiring tens of thousands of dollars—often upwards of $50,000. This significantly limits access for average investors.

For Firms

Companies borrow—that much is clear. But how they borrow makes all the difference.
Bonds, as opposed to traditional bank loans, allow firms to secure longer-term financing at lower interest rates.

• The average term for corporate loans is 7 years, while bonds typically mature in 10 years.

• Secured loans to non-investment-grade firms carry an interest premium of 1.4%–1.7%.

A well-developed bond market not only expands firms' access to capital by increasing the pool of lenders,
but it also strengthens their resilience during crises.

Following the Great Financial Crisis (GFC), bond issuance surged, particularly in emerging markets lacking hard currencies. Bonds served as a “spare tire” when banks slashed lending—for instance, loans to large borrowers fell 79% during the 2008 crisis.

By reducing systemic risk and enabling the free market to play a larger role in financing,
a robust corporate bond market ensures firms are better positioned to weather economic challenges
and maintain financial stability.

It’s Not All Doom and Gloom

We live in exciting times. Emerging Markets are actually emerging and the tokenization of Real World Assets is powering full steam ahead. Bond financing is gaining traction in the debt market while tokenized Real World Assets are set out to become a multi-trillion dollar industry. Tokenization will only speed up the process to approach a perfect market.

How Does Tokenization Help?

• Fractionalization of Bond Ownership: Tokenized bonds can be fractionalized into smaller amounts, making them more accessible to a broader range of investors.

• Higher Liquidity: Tokenized bonds have higher liquidity, with a lower bid-ask spread than similar conventional bonds by 5.3%. This liquidity gain can double to 10.8% if the bond is open to retail investors.

• Broadened Investor Base: The unique features of tokenized bonds, such as fractional ownership and round-the-clock trading, can attract a wider range of investors, including retail investors.

• Increased Transparency: The digital nature of tokenized bonds ensures that all transactions are recorded on a blockchain, providing a transparent and immutable record of ownership and transfer.

• Enhanced Automation: Through the use of smart contracts, the processes for issuance, interest payment, and principal repayment can be automated, reducing the need for manual intervention and minimizing the potential for errors.