Cadence, a blockchain-based private debt provider will be listed on the popular Bloomberg Terminal in a move that will see the blockchain-based platform become the first of its kind financial instrument based on a digital asset to be assigned a Financial Instrument Global Identifier (FIGI).
With the assigned FIGI, Cadence will effectively be available for research and trading on the Bloomberg Terminal for the vast amount of professional traders. A FIGI record carries information such as interest rate, maturity schedule and instrument type. Cadence has tokenized its debt instruments on the popular Ethereum blockchain basing them on the ERC-20 token standard.
“The assignment of a FIGI to digital assets is a natural and simple example of the standard’s native utility,” said Richard Robinson, Head of Data Standards and Strategy at Bloomberg adding that “It is proof that FIGI can easily extend to new, even esoteric financial instruments, without the need for an expensive build-out of additional infrastructure or cost to the industry. Now, Cadence’s FIGIs can be shared freely throughout the industry as a key reference data point for their issuances.”
Cadence CEO Nelson Chu is especially excited about the prospect having debt collateralized instruments on one of the most popular trading software in the world. In a statement, he said,
“We recognize the tremendous value that Bloomberg and their dedication to open data standards can bring to the nascent digital asset industry. We’re excited to provide Cadence clients with a foundation that can enable interoperability across the ecosystem and increase data quality and transparency for market participants.”
Speaking to industry media, Chu said that,
“We are creating an immutable ledger that houses all asset-level performance data at every stage of its lifecycle, from inception through maturity. This creates an oracle of asset performance data that every counterparty in a private credit transaction can reference to accurately price, structure and invest.”
As opposed to the traditional financial instruments that are mainly recorded on excel spreadsheets, Chu says that using the latest blockchain technology especially the public permission-less ledger that Cadence instruments are based upon, offers a transparent platform for trading instruments.
So far the company has issued eight instruments on the Terminal varied by their maturity dates, i.e., one-month, three-month and nine-month maturity and automatic roll-over features upon expiration of the instrument. Cadence platform allows investors to invest as little as 500 $ and is aiming to achieve annual returns in excess of 10%.