FinTech companies could electronically expand their bond trading in Mexico. Mexico trades an average of $ 240 billion in bonds annually, 15% of which is electronic. This can increase thanks to FinTech, as Jaime Zenizo, partner at BondEValue, indicates.
BondEValue’s partner also indicated that the bond market could grow by up to 30% over the next five years thanks to electronic operations. To contribute to this technological development, the Singapore-based FinTech platform BondEValue has its sights on the Mexican market. This could make it the first app with blockchain technology in Mexico in the first half of 2021.
BondEvalue Fintech is dedicated to trading bonds
BondEvalue, a fintech company dedicated to operating bonds, distributing news, broken securities powered by blockchain technology, and settlement under the SandBox program, recently made its debut in Mexico.
The platform provides access to any investor beyond institutional clients and enhances the way fixed income information is received by providing better access to international corporate and government bond markets around the world.
BondEvalue strives for everyone to be able to buy government bonds, a market that is no longer reserved for institutional investors only. This is in line with the global and long-term goals of increasing transparency, liquidity and accessibility to the financial sector.
So far, one way to buy bonds has been to purchase Exchange Traded Funds (ETFs) that are either based in Mexico or that have the international listing system. One limitation, however, can be the lack of marketability.
To contribute to this technological development, the Singapore-based FinTech platform BondEValue has its sights on the Mexican market. This could make it the first app with blockchain technology in Mexico in the first half of 2021.
It is important to emphasize that retail investor access to smartphones could be critical to gaining access to the bond market in the future, even though banking in the Aztec nation is around 40%. According to Zenizo:
“Almost everyone in Mexico already has a smartphone. We are making the technology available so that they can see information on fixed-income securities via an application and, in a second step, make the investment directly from the phone.”
He added that the minimum amount to invest in a bond of this type was USD 200,000. However, he emphasized that with the technology they envision, they could bring this down to just $ 1,000.
During the first implementation phase, anyone can access the information system, but only institutionalized customers can access the investment platform. Later, in the second phase, every citizen can invest over their phone.
Payments and Credits
The reason why some of the solutions offered by Fintech have taken center stage is related to a new reality where virtual, contactless and cashless payments have achieved unprecedented relevance in the context of the pandemic.