It's a new era for debt instruments and smart money, Arca’s Anthony Bufinsky writes.
In the 1988 movie "Die Hard," a New York City police officer travels to Los Angeles to reunite with his estranged wife at her company’s holiday party. As the party is underway, terrorists seize control of the building and take everyone hostage. The intruders were on a mission to steal $640 million in bearer bonds, which, unlike registered bonds, carried no serial number or registration records and are untraceable with no record of ownership. If they had been successful, the law would have presumed the person in possession of the bond (the bearer) was the rightful owner.
Anthony Bufinsky is the head of growth at Arca Labs.
But with the advent of blockchain, a "Die Hard" heist would be fruitless. Smart bonds – digital bonds stored on a distributed ledger – are an emerging application of the technology wherein each bond has a unique digital signature that verifies ownership and eliminates the need for physical certificates. Blockchain ensures all transactions are recorded and stored permanently, making it difficult for anyone to steal or alter the bond's value without detection.
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