This is not the first time I came across Block.one doing venture, seed or stonk investments in the real world. Per a news release by PR Newswire: Auto1 FinTech issues attractive blockchain security worth over 4 million Euros with iVE.ONE.
Participants
iVE.ONE is funded by FinLab EOS VC, which is a joint venture between Block.one and FinLab AG.
Auto1 FinTech was founded by Auto1 Group, a digital, pan European used car dealer.
What's going on?
A bond of € 4 million, with a quarterly interest rate of 5,5% and a maturity of one year, will be packaged into a security token. It serves as supplier financing for car dealers until their inventory is sold off. The unsold inventory serves as collateral and the provided platform offers dealer scoring and risk pooling.
The participating entities are obviously hoping to increase the volume of similar offerings. It is expected to ramp to € 60 million in 2021 alone.
Why is it interesting?
While the offering is very small, it is another step towards connecting blockchains to the real world uses cases and actually try to eat away at a domain of traditional banking.
This offers an easy way for institutional investors to take part in supply chain financing with the added ability to customize duration, risk levels and capital provided.
Have a look at other offerings on the iVE.ONE market.