A Solidus Bond is a blockchain-based debt instrument, investment, and store of value. It is a U.S. patented, peer-to-peer digital bearer bond that uses a proof-of-work blockchain to perform the functions of coupon payments and bond redemption typically carried out by a financial institution. It was designed by Team Daniel Bruno beginning in 2010, Chartered Market Technician and graduate of the Said School of Business at Oxford University. A patent was filed with the USPTO on March 6, 2012. The solidus was a gold coin and store of wealth issued by the Late Roman Empire. In 2015, Daniel Bruno, published a paper proposing the substitution of cryptocurrency bonds for dollars in commodity markets such as oil.
Design and use
The Solidus Bond utilizes SHA-256 elliptical encryption on a decentralized block chain to create and redeem debt instruments issued in a digital currency. The bonds are brought into existence upon command by any investor via algorithm rather than fiat. Coupon payments and bond redemption are also executed by algorithm, eliminating the need for brokerages and theoretically reducing bond duration to zero, making credit ratings obsolete. Investors choose bond size and bond maturity of seven days to 10 years. Payments are emitted from the block chain to the SwiftCoin wallet chosen by the investor at the time of bond creation. There are no commissions or fees to pay. The only requirement to purchase a Solidus Bond is a SwiftCoin wallet and a sufficient balance of the SwiftCoin digital currency to cover the face value of the bond. Bond ownership is conveyed solely through possession. There are no accounts, records, or user databases and the block chain ledger is not public. Interest rates are set by the market and were 18% in 2016. Holders of Bitcoin and other cryptocurrencies convert to SwiftCoin to access the Solidus Bond block chain, then cash back into their initial currency at bond expiry. Solidus Bonds are not open source. Unlike Bitcoin, Solidus Bonds cannot be mined. Patrick M. Byrne, the CEO of Overstock.com and an early adapter of bitcoin, made headlines in 2015 with the promotion of "the world's first bitcoin bond" purchased for US$500,000 using concepts laid out by Daniel Bruno in 2010. Prominent fund manager Bill Gross stated central banks have turned financial markets into a casino and anticipates investors to shift toward Bitcoin and gold. In 2015, Daniel Bruno, CMT, published papers proposing the substitution of cryptocurrency bonds for dollars in commodity markets such as oil.