Strip a bond into its principal and yield. Lock in a fixed rate, trade your coupon stream forward, or hedge rate exposure without selling duration. One Canton-native venue, four institutional positions.
Tokenized bonds exist. Custody exists. What's missing is the layer that makes them tradable, hedgeable, and composable — without leaving the regulated perimeter institutions actually need.
Treasury desks and conservative allocators want predictable, term-matched yield — without coupon volatility or duration headaches. The instruments exist on-chain, but the secondary market for cleanly stripped principal claims doesn't. So they sit in cash, or take more risk than they want.
Hedge funds and credit desks want leveraged exposure to coupon and credit spreads — without warehousing the bond, hedging the duration, or running settlement risk on every leg. Without separable yield tokens, every rate trade requires four legs in TradFi instead of one click.
Three primitives unlock the venue. A tokenized bond enters; two independently tradable cash-flow claims come out; both legs trade in a single Canton-native pool. From there, every fixed-income position is one transaction away.
An institutional holder deposits a tokenized bond — senior notes, tokenized money-market exposure, or any on-chain debt instrument with a known maturity and coupon — into the Konseq splitter. The bond becomes wrapped into a standardized internal representation.
The wrapper splits into a Principal Token (PT — a zero-coupon claim that redeems at par at maturity) and a Yield Token (YT — a claim on every coupon between now and maturity). Both legs are independently tradable. PT + YT always equals the underlying bond.
A single PT/SY pool prices both legs via flash swap. Sell YT to lock in a fixed yield. Sell PT to express a view on rates. Provide liquidity and earn swap fees plus the underlying coupon. Konseq strips and trades — bond settlement happens off-platform via the issuer or a regulated venue.
Each leg has a natural counterparty. Konseq doesn't pick a side — it routes capital between them.
Canton is becoming the settlement layer for institutional tokenized debt. Konseq plugs into the participants who are already there.
Custodians issue. Market-makers quote. Liquidity routes through KYC'd counterparties. What's missing is the primitive that turns it all into a working secondary market. That's what Konseq builds.
Qualified investors only. KYC'd, identity-aware, regulated from day one. Different desks, different mandates, the same primitive.
For treasuries, family offices, and asset managers who want term-matched, known-yield exposure — without the operational overhead of holding the underlying bond to maturity.
For hedge funds, credit desks, and rate traders who want clean exposure to coupon and credit spread — without warehousing the underlying or running multi-leg TradFi settlement.
Sharing the full thesis and a live demo with select issuers, market-makers, and institutional buyers ahead of our 2026 launch. If you're a Canton participant, a tokenized-bond issuer, or evaluating yield infrastructure — get in touch.