Ejara Announces Tokenized Treasury Bonds
Ejara is a blockchain-based mobile investment platform that enables users to securely buy, sell, exchange, and store their crypto investments.
Even though there has been no marketing budget deployed so far, Ejara has seen healthy growth since they started about a year ago. The app currently has over 8,000 users from Cameroon, Ivory Coast, Burkina Faso, Mali, Guinea, and Senegal.
Ejara is about to offer its users the possibility to invest in government bonds. Something that was not feasible for the average investor until now.
“While the purchase of government bonds today represents a low-risk, high-return opportunity, access to these financial products remains difficult for individuals.
This reality is more noticable in the CEMAC zone where individuals hold only 1% of the outstanding debts in circulation against 80% for banks“.
Ejara makes it possible for anyone, including the low-income population, to access a market that is traditionally inaccessible for the average investor.
Bonds are fractionalized as tokens and can be bought in low-value quantities.
“The treasury bonds are backed by the Central bank but each one is worth 15$ or 1500$ and usually you have to buy at least 150,000$ to even get a chance to enter this market.
We are tokenizing it in fractions of 1.5$ to enable mainstream access.” – Nelly Chatue Diop (CEO and Co-Founder of Ejara)
Tezos blockchain
The large value bonds are tokenized and fractionalized on the Tezos blockchain. That means that a single bond can be divided into several tokens.
This way a bond of 100USD for example, can be sold as 100 tokens of 1USD.
Since this is done on the Tezos blockchain, everything can be registered and all regulations necessary can be enforced through fixed restrictions that are included in the smart contracts involved.
Basically, this is how it works:
1) Ejara as a company, bought Treasury Bonds through a regulated Asset management entity on the market.
2) These sovereign bonds are guaranteed by the local central bank (For example the Bank of Central African States, the BEAC).
3) Ejara tokenized these Bonds on Tezos Blockchain.
After this process has been completed, small fractions of Treasury Bonds can be traded.
Buying and selling small value tokens can be simply done on the Tezos blockchain, because transaction costs are minimal.
The Tezos blockchain is slowly but surely revolutionizing the blockchain industry by achieving goals such as low transaction costs, high transaction speed, and the capacity to scale towards high amounts in transaction capacity. All without the need to sacrifice decentralization.
No dev backdoors through multi-sig access to protocol level code, no limited number of nodes or selection of nodes, pure decentralization. Tezos is the perfect blockchain to deploy these types of financial products on.
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