Challenges in State & Local Government Finance
As of 2018, out of 90,056 local government entities in the United States, approximately 38,000 had active bond issuances representing $500 billion in annualized new paper. The majority of local municipalities have never financed any operations or infrastructure development.
Out of all offerings reported in 2018, 86% were $50 million or less. This represents 24% in overall par value – approximately $120 billion/year.
Tokenized Municipal Bond Offerings
By tokenizing municipal bond offerings via XDEX, local governments can solve these problems and bring a more cost-effective issuance and secondary market for the average investor.