“There has been a new strategic partnership between Prontoblock and Mercantile Bank International (MBI). The partnership will offer clients of MBI to engage in the purchase and issuance of tokenized paper through the digital asset platform of Prontoblock.”
Partnerships are a common part of today’s financial world. With technology empowering financial institutions, they are more widely spreading their territories and thus offering their customers new-age financial services through their partner’s platform.
In the same episode, there has been a new strategic partnership between Prontoblock and Mercantile Bank International (MBI). The partnership will offer clients of MBI to engage in the purchase and issuance of tokenized paper through the digital asset platform of Prontoblock.
Prontoblock is looking forward to working closely with issuers to assess the most appropriate commercial paper instruments for the purpose of tokenization.
Bo Collings, CEO of MBI, said, “Our alliance with Prontoblock perfectly aligns with our strategic vision. Tokenizing commercial paper allows us to provide a diverse array of investment opportunities to our clients while facilitating their access to liquidity. Through leveraging our advanced blockchain technology stack, we are poised to enhance client investment capabilities, yielding exceptional outcomes while meticulously adhering to US securities regulations.”
What is ProntoBlock & Mercantile Bank International?
Prontoblock is an innovative fintech platform that uses blockchain technology to empower everyone with a multi-trillion-dollar fixed-income industry. By reducing operational friction and transaction costs, the platform enhances compliance and transparency.
Mercantile Bank International is a bank based in the US that provides financial services worldwide. They are dedicated to providing innovative solutions that make a positive impact on the economy and society. They prioritize premium client care while still maintaining traditional banking values.
Bill Gleason, CEO of Prontoblock, said, “MBI, with its robust presence in the US digital asset space, is an ideal partner as they routinely generate excess liquidity and are in search of high-quality, short-term liquid instruments to invest their short-term liquidity and generate an attractive risk-adjusted return.”
Why have both organizations collaborated?
At the end of 2022, the US commercial paper had a remarkable worth of over $1.25 trillion. Commercial paper functions similarly to fixed-income investments, but it generally offers higher rates compared to Treasuries with similar maturities and even bank savings deposit rates. Prontoblock is planning to tokenize $1 billion worth of assets by Q2 2024, and $250 million of this amount will consist of high-quality commercial paper.