Designing the Future of Bond Markets : Reducing Transaction Costs Through Tokenization

Titelangaben

Cisar, David ; Schellinger, Benjamin ; Stoetzer, Jens-Christian ; Urbach, Nils ; Weiß, Florian ; Gramlich, Vincent ; Guggenberger, Tobias:
Designing the Future of Bond Markets : Reducing Transaction Costs Through Tokenization.
In: Electronic Markets. Bd. 35 (2025) . - 9.
ISSN 1422-8890
DOI: https://doi.org/10.1007/s12525-025-00753-3

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Abstract

Corporate bonds are an attractive option for corporate financing. However, current bond markets face many challenges and
inefficiencies, resulting in high transaction costs (TAC). In recent years, technological advancements like blockchain technol-
ogy have enabled the possibility of reducing TAC in bond markets. Even though practice experiments with such solutions,
academic literature lacks generic design knowledge under the TAC lens to design blockchain-based bonds. Thus, our research
follows the design science research (DSR) paradigm to design and develop a bond prototype using the Ethereum blockchain
protocol. Our results highlight the capability of blockchain-based bond markets to reduce TAC in the three dimensions of
asset specificity, uncertainty, and transaction frequency. Further, our research provides design principles to contribute to both
practice and the academic discourse on developing blockchain-based bond markets with reduced TAC.