There are many different types of investments you can make to put your extra capital to work. By investing, your money has the potential to earn interest and grow over time, helping you build more wealth for the future. The concept is used for more than a hundred years by private individuals and institutional investors.
In financial markets, securities are classified in different ways: national and cross-border securities; equity and debt securities; securities by the industry in which they are traded; underlying securities and derivatives, etc. Some of these derivates, id est, synthetic CDOs while left poorly regulated became one of the major causes for last big financial crisis of our times. The 2008 global financial crisis is considered the biggest financial crisis since the Great Depression, which shook the entire world between 1929 and 1933.
So it took about seventy-five years for thoughts of caution to completely fade from the shadows of people’s minds. To understand the scale of the Great Depression, in the United States, millions of people ended up on the streets and the official unemployment rate was around 25%. It is hard to imagine such dramatic scenarios in market economies today. However, the our personal observation is that the tremendous pace of technological development has created a relatively large gap in social inequalities, which will certainly not be without consequences in the future, including in the financial markets. By creating Stableo, we are trying to bridge that gap. We are believing that with the right combination of such classical financial instruments as Eurobonds and with so progressive technology as blockchain, we could lead the users to better understanding of financial markets and technologies.
An appropriate knowledge about financial instruments, technologies and investing is of crucial importance due to fact that people are living longer and becoming older as well. In particular, the future estimates of experts from authoritative institutions are not very encouraging. For example: the World Bank estimates that the number of people over 60 will triple to 1.4 billion by 2030; experts in the UK have calculated the so-called dependency ratio – the ratio of pensioners (over 65) to the economically active population (15-64) – which was 21% in 1990 and will be around 43% by 2040; in Germany it is 47%, while in Italy and the Netherlands it is even around 48%.1
So, if some public authorities of the least developed EU countries do not urgently start intensive and far-sighted work on developing and integrating effective financial, tax and demographic policies, including proper education, we could already see a global crisis in the pension system around 2040. Such shocks will be more easily absorbed by economically strong countries because of their incomparably larger gross domestic product. However, some countries will have the huge material burden on the shoulders of the economically active will increasingly push society into poverty, with all the consequences that this entails – negative public sentiment, emigration, enveloping wages, rising public external debt, etc. There is no magic wand.
This does not mean that society should expect the state to put things right for society. It won’t! We, the readers of this blog should not rely on the state. Savings and investments will have to be taken care of themselves. This is a long-term process. Personal investment today at an individual level will go a long way towards alleviating such unnecessary headaches in the future, with savings helping to make the potential pension disaster easier to bear. So, knowledge and adequate handling of the financial markets will also be useful in this respect.
We think that the combination of Eurobonds and blockchain technologies are comparetively good place to start.
In particular, eurobonds are debt instruments issued by governments of the EU to raise capital. Investors lend money to the government in exchange for periodic interest payments and eventual return of principal. However, Stableo are digital assets pegged to the government debt of the EU countries which by themselves are low-risk and investment grade. Both of these investment solutions has strong sides.
Pros of Eurobonds:
- Low risk: Backed by the credit of a sovereign nation.
- Predictable returns: Offers fixed interest (yield).
- Inflation hedge: Some bonds (like TIPS) protect against inflation.
- Widely accepted collateral: Used in repo markets, central bank reserves, etc.
Pros of Stableo:
- Yield-bearing reserve: Backing by bonds allows the issuer to earn interest, potentially enabling more sustainable business models.
- Digital utility: Easily transferable, programmable, and compatible with DeFi protocols.
- Transparency & auditability: On-chain records and real-time attestations can build trust.
- Regulatory comfort: Compared to crypto-collateralized stablecoins, bond-backed models may align better with traditional financial regulations.
- Reduced counterparty risk: Compared to commercial paper or crypto-based collateral.
Further let’s look at some of the cons these instruments could have:
| Factor | Eurobonds | Stableo |
| Liquidity | High (especially Treasuries) | Depends on redemption mechanisms |
| Access | Not easily accessible to retail globally | More accessible via crypto wallets |
| Volatility | Prices can fluctuate with interest rate changes | Stable in price, but reserve values fluctuate |
| Custodial Risk | Minimal if held directly | Rely on issuer’s reserve management |
| Regulatory Oversight | Very high | Very high |
| Settlement Speed | Slow (T+1 or T+2) | Near-instant transfers on-chain |
| Transparency | Periodic disclosures | Can offer real-time attestations (if designed) |
| Interoperability | Limited to traditional systems | Global, interoperable with DeFi ecosystems |
If we look at the information provided above, it easily to understand why to think about investing in Stableo – if the issuance of stablecoins is properly managed and supervised, has the right reserves devoted and all the right technology solutions has been used, then Stableo provides similar risk levels, faster transactions, better accessability.
All in all, it matters due to the fact that bonds now offer meaningful yield. A stablecoin backed by yield-generating assets can be more sustainable than those backed by non-interest-bearing fiat. Moreover, as a relatively conservative investment excluding often seen crypto volatility issues. Stableo as fully-reserved, transparent and regulated stablecoins appeal to institutions and governments.
In conclusion, bond-backed stablecoins such as Stableo combine the best of two worlds: the safety of sovereign debt with the flexibility of digital assets. But like any hybrid they require thoughtful design, clear disclosures and strong governance to build trust and longevity. This is the thing Stableo want to prove.
- Valdez S., Moluneux P. An Introduction To Global Financial Markets. 8th Edition. Macmillan education: Palgrave, 2016, p. 211. ↩︎
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