Instrument Types: Overview
Bondi tokenizes access to bonds and sukuk — two fundamentally different fixed-income instruments.
What Bondi Does
Bondi provides fractional, onchain access to institutional fixed-income securities. The instruments themselves are issued by third parties (corporations, banks). The platform creates the technology layer that makes them accessible at lower minimums.
Key principle: Compliance is inherited from the original issuance. Bondi does not issue bonds or sukuk directly but tokenizes access to existing, certified instruments.
Bonds vs Sukuk: Core Differences
| Aspect | Bonds | Sukuk |
|---|---|---|
| Structure | Debt obligation | Asset ownership |
| Return Mechanism | Interest payments | Profit from asset performance |
| Shariah Compliance | No (riba prohibited) | Yes (if certified) |
| Investor Role | Creditor | Owner |
| Default Scenario | Unsecured claim | Claim on underlying assets |
How Bondi Maintains Compliance
For Bonds
- Bondi tokenizes access to publicly traded or institutional bonds
- Investors receive a pro-rata claim on bond cashflows
- Credit risk, interest payments, and maturity remain unchanged
- Shariah status: Same as underlying bond (typically not halal due to riba)
For Sukuk
- Bondi tokenizes access to Shariah-certified sukuk
- Certification is inherited from the original issuance (e.g., DIB, ADIB Shariah boards)
- Asset-backing, profit distribution, and structure remain unchanged
- Shariah status: Inherited from original certification
- Investor responsibility: Verify independently and consult a scholar
Risk Disclosure
All investments carry risk:
- Credit risk: Issuer may default (BB- rated = 3-5% probability over 5 years)
- Liquidity risk: Secondary market may be thin; hold-to-maturity is often advised
- Market risk: Bond/sukuk prices fluctuate; early sale may result in loss
- Regulatory risk: Token holding restrictions may apply in certain jurisdictions
- Infrastructure risk: Custody, smart contracts, blockchain dependencies
Past performance ≠ future results. No guarantees.
Choosing the Right Instrument
Choose Bonds if:
- Shariah compliance is not a requirement
- Liquidity and deep secondary markets are prioritized
- Interest-based returns are acceptable
Choose Sukuk if:
- Shariah compliance is essential
- Asset-backed exposure is desired
- Lower liquidity is acceptable in exchange for halal status
- Certification can be verified independently
Always:
- Read the prospectus
- Understand credit ratings (BB-, A+, AAA)
- Verify Shariah certification (for sukuk)
- Consult financial advisors and scholars
- Assess risk tolerance and investment horizon