What Are the Regulatory Hurdles for Issuing a Corporate Bond as a Smart Contract?

Issuing a corporate bond as a smart contract, or a "smart bond," faces significant regulatory hurdles. These instruments are still securities, so they must comply with existing securities laws, including registration, disclosure, and investor protection rules (e.g.

KYC/AML). Regulators are still developing frameworks for digital assets, creating uncertainty about jurisdiction and enforcement.

Key challenges include ensuring that the technology meets standards for custody, transfer, and reporting, and figuring out how to integrate decentralized blockchain records with traditional legal and financial systems for compliance purposes.