A FUND has been launched that enables investors to invest in peer-to-peer Bitcoin lending alongside a range of other assets.
Called Bond, the fund lets accredited investors buy securities known as “Bond Units” in an asset portfolio that holds a mixture of property bonds, real estate and cryptocurrency assets.
Each Bond Unit, which digitally represents an equity share of Bond’s asset portfolio, will be issued on the Bitshares Blockchain and traded via the Bitshares decentralised exchange.
This enables investors to trade the units as a new form of digital currency with other accredited investors.
The portfolio has 30 per cent exposure to P2P Bitcoin lending; 30 per cent to property bonds and real estate; and 30 per cent to digital currency learning website the Billion Hero Campaign. The remaining 10 per cent is invested in alternative cryptocurrencies.
Read more: Cryptocurrency providers eye P2P lending
Bond, created by a group of London-based businesses and cryptocurrency specialists, claimed the asset portfolio is fully transparent and designed to safeguard the value of the basket and protect from downside risk.
The minimum projected annual rate of return is eight per cent.
An initial five million Bond Units have been made available for pre-sale purchase at an initial price of $1 (75p) per unit, with the minimum contribution level $500.
Robert Edwards, founder and chief executive of Bond, said: “By offering traditional asset-backed securities in a transparent, blockchain-based digital environment, Bond’s mission is to unify the reduced risk of the old with the possibilities and potential of the new.”
He said the fund is not about “getting rich quick” but is a “sensible, reduced risk investment”.
Read more: Blockchain special feature