Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319042 
Year of Publication: 
2025
Citation: 
[Journal:] Electronic Markets [ISSN:] 1422-8890 [Volume:] 35 [Issue:] 1 [Article No.:] 9 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2025
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
Corporate bonds are an attractive option for corporate financing. However, current bond markets face many challenges and inefficiencies, resulting in high transaction costs (TAC). In recent years, technological advancements like blockchain technology have enabled the possibility of reducing TAC in bond markets. Even though practice experiments with such solutions, academic literature lacks generic design knowledge under the TAC lens to design blockchain-based bonds. Thus, our research follows the design science research (DSR) paradigm to design and develop a bond prototype using the Ethereum blockchain protocol. Our results highlight the capability of blockchain-based bond markets to reduce TAC in the three dimensions of asset specificity, uncertainty, and transaction frequency. Further, our research provides design principles to contribute to both practice and the academic discourse on developing blockchain-based bond markets with reduced TAC.
Subjects: 
Bonds
Design science research
Transaction cost theory
Blockchain
JEL: 
M15
G14
D23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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