City of Quincy Breaks New Ground with Blockchain Bond Issuance
City of Quincy Makes History with Blockchain Bond Issuance
In a groundbreaking move for the US public sector, the City of Quincy in Massachusetts has successfully issued $10 million in tax-exempt bonds using blockchain technology. This marks a significant step towards transforming municipal debt markets in the country.
The city, located just south of Boston, is now the first municipality in the US to carry out a blockchain bond issuance. Quincy joins a growing list of state authorities worldwide that are leveraging distributed ledger technology (DLT) to raise funds. Other examples include the Swiss city of Lugano, the governments of Hong Kong and the Philippines, and the European Investment Bank.
Mayor Tom Koch expressed his excitement about the innovative issuance, stating that it is part of the city’s efforts to utilize emerging technologies for the benefit of its constituents. He emphasized the importance of creating greater financial participation and better economic outcomes through such initiatives.
The bond issuance, which took place on April 25th, was conducted in partnership with JP Morgan using the bank’s Digital Debt Service application built on the Onyx Digital Assets platform. Quincy has been actively supporting DLT through various initiatives, including sponsoring Boston Blockchain Week and collaborating with blockchain innovation hub Qubic Labs.
City of Quincy’s Chief Financial Officer, Eric Mason, highlighted the smooth execution of the issuance and expressed plans for more blockchain bond issuances in the future. The city aims to democratize the bonding process and keep interest payments within the local economy.
Despite facing regulatory challenges, Quincy’s journey towards the blockchain bond issuance was supported by internal stakeholders, including Mayor Koch and City Council President Ian Cain. The city also received guidance from Lugano’s deputy chief financial officer, Paolo Bortolin, who shared insights and best practices from their own experience with blockchain bonds.
The inaugural blockchain issuance, though smaller in value compared to previous bond sales by Quincy, marks a significant milestone in the city’s financial innovation efforts. With the successful completion of this issuance, Quincy is paving the way for more municipalities in the US to explore the potential of blockchain technology in public finance.
