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Micro-sovereign funding: How tokenized bonds can break the sovereign debt trap
Developing countries face higher borrowing costs than advanced economies, creating a cycle in which debt servicing crowds out spending on growth, infrastructure, healthcare and ducation. By reducing minimum investment thresholds, enabling instant settlement and automating administration through smart contracts, tokenized bonds open sovereign debt markets to a wider investor pool. A three-layer strategy, involving retail debt tokenization, converting bank-held debt and tokenized green Islamic finance-aligned bonds, offers a practical blueprint for replication. [..]