What Are the Advantages of Using Smart Contracts for Issuing and Managing Corporate Bonds?

Using smart contracts for corporate bonds, often called "smart bonds," automates many processes, reducing administrative costs and time. Coupon payments and principal repayment can be automatically executed by the smart contract on predetermined dates, ensuring timely payments to bondholders.

The bond's ownership is recorded on the blockchain, providing a transparent and immutable ledger of transactions, which simplifies transfer of ownership and reduces settlement times. This automation and transparency can lower the reliance on intermediaries like paying agents and registrars.