Using the Pivio platform
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- Contact us to show your interest and begin the onboarding
- Complete KYC/AML on-boarding process to have your wallet(s) approved
- Place your order on a primary bond issuance on the Pivio platform
- Settle your order with USDC, and receive TBL minted bond tokens into your wallet atomically
- Optionally trade your bond tokens with other eligible investors
- At maturity, claim your USDC redemption payment into your wallet
- Resubscribe to new bond issuance
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- A bond is created on the blockchain
- The bond becomes "open for orders", and you can create an order for this bond through the Pivio platform
- The bond price is set and your orders become a “commitment”; this is a commitment to invest funds on a given date
- You settle your commitment via the platform
- The bond is issued
- The tenor of the bond elapses and the bond matures
- You can now claim your final repayment on the Pivio platform
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Yes, you need to connect your digital wallet and fund any bond issuances of interest with USDC. If you don’t have any USDC and want to invest in our products you might consider procuring USDC elsewhere.
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No, unfortunately our digital bond products are not available for investment with fiat currency.
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A commitment is a legally binding agreement to fund the transaction for the notional investment amount previously declared during the book building process for that transaction.
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You will receive your tokens into your wallet immediately upon transferring your USDC into the Digital Bond Token’s smart contract as this occurs on an instantaneous or “atomic” delivery-versus-payment (DVP) basis, thereby eliminating settlement risk for both parties.
Legal assurance & regulation
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Non-US institutional investors are defined as sophisticated, professional investors who are legal entities (as opposed to retail investors who are individuals) that invests on behalf of its members.
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No, the underlying asset will not be registered in your name as there is no direct ownership of it. As an investor in our products, you have a debt claim against the bankruptcy remote SPV of the issuer and hence all the legal and economic benefits of holding the asset off-chain.
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Token holders have all the legal and economic rights afforded by the underlying asset.
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In order to invest in a bond you must first add a cryptocurrency address to your customer account.
Once you add your address to the platform we start the process of using KYT services to approve your address.
You will receive an email when your address is approved and you will be able to claim your funds from for your invested bonds.
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PV01 will provide attestation reports as consistent with the terms in the Offering Memorandum.
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PV01 is currently pursuing a T license with the Bermuda Monetary Authority (BMA) to become a digital asset provider. This will allow PV01 to act as an arranger and broker-dealer for the issuers of digital bonds, and to manage the book building and sales process to qualified non-US institutional investors.
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PV01 works with Fireblocks for on-chain security and vault management, Chainalysis for blockchain risk analysis, and rAML for KYC/AML services.
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PV01 uses FINRA-regulated broker-dealer StoneX’s custodian, BNP Paribas.
Specifics of bond investment
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We use WalletConnect, which is compatible with most digital wallets such as MetaMask, Safe, Rainbow etc.
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It is estimated that up to $100bn worth of stablecoins are not earning any yields. With PV01’s bond token products, non-US institutions can safely earn yields on real world fixed income assets such as US Treasuries and other corporate credit.
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PV01 charges 25bps on an annualized basis for its Digital Treasury Bill products. The other cost incurred by investors would be Ethereum gas fees. Each subsequent bond product will have its own unique fee structure.
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Gas refers to the unit that measures the amount of computational effort required to execute specific operations on the Ethereum network. Since each Ethereum transaction requires computational resources to execute, those resources have to be paid for to ensure Ethereum is not vulnerable to spam and cannot get stuck in infinite computational loops. Payment for computation is made in the form of a gas fee. For more information regarding Ethereum gas fees: https://ethereum.org/en/developers/docs/gas
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Please see above for steps to purchasing a token. During the bond token issuance process, approved wallet investors will transfer their USDC to the smart contract and a bond token will be automatically minted with atomic settlement. At redemption, investors will log back into the Pivio platform and hit "redeem". In the case of a zero coupon bond, the interest and principal will be returned to the approved wallet and the bond token will be burned atomically.
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Yes, you can follow the value of the bond off-chain as well as its value if it is traded on the secondary market.
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The token price is derived by the underlying price of the asset, minus the transaction fee.
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Cash and Treasury management are similar, the only difference being time horizon. Cash management is typically concerned with short-term goals of ensuring that an organisation has enough cash on hand to meet its obligations, while treasury management focuses on the long-term goal of maximising the organisation's profitability.
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The Digital Bond Tokens can be sold or transferred onwards to another wallet at any point during the investment life cycle.
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At the moment you cannot roll over your investment automatically into a new PV01 bond product, however that is functionality we will bring to the platform in the near future.
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A zero coupon bond doesn’t pay any interest but instead is sold at a discounted price and redeems at 100% (=nominal value). Usually bonds with a maturity of less than 1 year (such as T Bills and Commercial Paper) are issued with a zero coupon.
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A money market yield is what money market instruments are expected to return to investors. It is calculated by taking the holding period yield and multiplying it by a 360-day bank year divided by days to maturity. It can also be calculated using a bank discount yield. On the Pivio platform, we display the discount yield by default.
The formula for the money market yield is:
Money market yield = Holding period yield * (360/Time to maturity)
Money market yield = [(Face value – Purchase price)/Purchase price] * (360/Time to maturity)
For example, a T-bill with a $100,000 face value is issued for $98,000 and is due to mature in 180 days. The money market yield is:
For example, a T-bill with a $100,000 face value is issued for $98,000 and is due to mature in 180 days. The money market yield is:
= 0.0204 * 2
= 0.0408, or 4.08%
Money market yield is calculated, using a bank discount yield is calculated, using a bank discount yield.
A discount yield computes the expected return of a bond purchased at a discount and held until maturity, expressed as a percentage. Discount yield is commonly used to calculate the yield on municipal notes, commercial paper and treasury bills sold at a discount.
Assume, for example, that an investor purchases a $10,000 Treasury bill at a $300 discount from par value (a price of $9,700), and that the security matures in 120 days. In this case, the discount yield is ($300 discount)[/$10,000 par value] * 360/120 days to maturity, or a 9% dividend yield.