General Information

UACB (Ukrainian Crypto Bond) – the first Ukrainian crypto bond backed by Ukraine’s peace bonds. This project, launched in 2022 by the ICU group and EVOL.TECH, was a groundbreaking step in Ukraine’s financial sector, combining blockchain technology with government-issued peace bonds.

This innovative initiative allowed cryptocurrency holders to support the country’s defense capability and receive a guaranteed return on their investment.

“ICU has been the leader in the government bond market in Ukraine for more than 15 years, and it is one of the most technologically advanced brokers in the country. Due to the war with Russia, our main focus is the promotion of peace bonds. With the help of UACB, Ukraine’s victory can be supported by cryptocurrency with a state-guaranteed return on investment,” commented ICU Deputy Director Yevgeniya Gryshchenko.

How Does It Work?

UACB made it easy and anonymous to invest cryptocurrency in tokens backed by peace bonds with a state guarantee of repayment and all the advantages of blockchain technology.

The UACB issuance debuted on June 16, 2022. All transactions were made using the stablecoin Tether (USDT), a cryptocurrency pegged to the U.S. dollar. Any crypto holder could support Ukraine’s victory by purchasing UACB tokens with USDT.

After the government repaid the war bonds, UACB tokens were exchanged back into the invested USDT. The buyback process took place in November 2022.

Since all settlements were made in USDT, pegged to the dollar, UACB also helped avoid currency risks during a time of exchange rate uncertainty.

Benefits of UACB for Investors

• Guaranteed returns: investments were backed by government war bonds.

• Stable currency: using USDT minimized currency risks.

• Simplicity: tokens were purchased and redeemed online, with no complicated procedures.

• Low entry threshold: UACB tokens could be purchased starting from 100 UAH (about 3 USDT at the time of the project).

Project Results

The first issue of UACB tokens received significant support from the crypto community. After the maturity date of the war bonds, the Ministry of Finance of Ukraine fully met its obligations, and investors received their funds back. This example proved the effectiveness of integrating blockchain technologies with traditional financial instruments.

Prospects

UACB set a valuable precedent for future projects that combine fintech and public finance. It demonstrated how digital assets can serve as a strategic tool in the development of the economy and government financing during wartime conditions.

“We have vast experience in trading government securities and many ideas on how to develop this market. ICU was the first in Ukraine to introduce online trading in government bonds. We were the first to offer individuals military bonds, which at the beginning of the war became the second source of financing for the state budget. Now we have implemented a tool to attract a new type of investor to the market. We have many more ideas and plan to continue to actively develop the government bond market with the active participation of the state,” according to Yevheniia Gryshchenko, Deputy Director of ICU.

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