Government is exploring how Bermuda can issue bonds on a global basis utilising blockchain technology, the Premier has said.

In a tweet, David Burt said he met with Radoslav Albrecht, chief executive officer and founder of German fintech company Bitbond, which he said “utilises #blockchain to provide innovative financial solutions”.

A spokesperson for Bermuda’s Ministry of Finance said in a statement: “We had the opportunity to meet with the founder and CEO of Bitbond to discuss innovative financial solutions they have delivered.

“Bitbond is a German company whose primary business is originating loans to small and medium-sized businesses globally using its blockchain platform.

“What we found particularly interesting is that the company has also funded some of its growth by conducting a security token offering.

“An STO is much like a typical corporate bond offering in terms of the contractual financial obligations, but operational aspects such as subscriptions, transactions, payments and custody are handled automatically using blockchain technology.

“Consequently, although we are at very early stages, we are endeavouring to explore ideas and solutions for similar and other types of fund raising that may facilitate the issuance of digital assets in Bermuda.”

Founded in 2013, Bitbond claims it is the “first global lending platform for small business loans. We leverage blockchain technology to connect creditworthy borrowers with individual and institutional investors”.

Based in Berlin, the global peer-to-peer lender closed on a security token offering in July, which was approved by German regulator BaFin. The offering raised€€2.1 million for a digital bond, a report on the website crowdfundinsider.com says. Investors from 87 different countries participated in the offering, minus the United States and Canada.

The site said the World Bank raised $110 million in a “blockchain bond” almost a year ago. There have been other entities that have leveraged blockchain technology to issue bonds, it added.