Research paper

Designing the future of bond markets: Reducing transaction costs through tokenization

Using a transaction-cost-theory lens, the paper designs an Ethereum-based bond prototype and derives five design principles for blockchain-based bond markets: apply modular design, exploit multi-token standards, automate on-chain payouts, restrict forced-transfer functions to regulators, and implement smart-contract-based crypto securities registers.

PaperOpen source resource ↗

Overview

Publication metadata and narrative from the current library record.

Authors: David Cisar, Benjamin Schellinger, Jens-Christian Stoetzer, Vincent Gramlich, Tobias Guggenberger, Nils Urbach, Florian Lennart Weiss
Year: 2025
Venue: Electronic Markets 35:9 (2025)
Methodology: Design science research; transaction-cost-theory lens; Ethereum prototype; derivation of meta-requirements, design objectives and principles.

blockchainbond-markets-tokenization-tacdesign-science-researchfinance-bondssecuritiestokenizationtransaction-costs

Designing the future of bond markets: Reducing transaction costs through tokenization

Authors: David Cisar, Benjamin Schellinger, Jens-Christian Stoetzer, Vincent Gramlich, Tobias Guggenberger, Nils Urbach, Florian Lennart Weiss
Venue: Electronic Markets 35:9 (2025)
Link: https://doi.org/10.1007/s12525-025-00753-3 (opens in a new tab)

Summary

Artifact

An Ethereum-based bond prototype (security token offering) reducing transaction costs.

Methodology

Design science research; transaction-cost-theory lens; Ethereum prototype; derivation of meta-requirements, design objectives and principles.

Citations

[1] David Cisar, Benjamin Schellinger, Jens-Christian Stoetzer, Vincent Gramlich, Tobias Guggenberger, Nils Urbach, Florian Lennart Weiss. Designing the future of bond markets: Reducing transaction costs through tokenization. Electronic Markets 35:9 (2025). https://doi.org/10.1007/s12525-025-00753-3 (opens in a new tab) [2] Source document: Designing the future of bond markets - Reducing transaction costs.pdf

DSR grid

Six dimensions represented in the current paper record.

Problem description

Bond markets face many inefficiencies and high transaction costs, and academic literature lacks generic design knowledge - under a transaction-cost lens - for designing blockchain-based bonds.

Input knowledge

Transaction cost theory (TAC) as the kernel theory; tokenization and securities literature; Ethereum token standards (ERC-1155); regulation such as MiCAR and eWpG.

Research process

Design science research: an Ethereum bond prototype, with meta-requirements, design objectives and principles derived under a TAC lens.

Key concepts

Bonds, design science research, transaction cost theory, blockchain, tokenization.

Solution description

An Ethereum-based tokenized bond (security token offering) prototype that reduces transaction costs. Solution-space representation: Instantiation (prototype) plus a design theory (meta-requirements, design objectives, design principles).

Output knowledge

Five design principles: modular design, multi-token standards, automated on-chain payouts, restricting forced transfers to regulators, and smart-contract-based crypto securities registers.

Design knowledge

Directly linked concepts, grouped by their represented design-knowledge category.

Design Principle

Design Principle5

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp1

DP1 - Apply modular design of distinctive system components

Modularly structure complex bond-market systems into distinct, interconnected contracts to work within Ethereum's contract-size limits, using modifiers and specific sender functions to protect comp...

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp2

DP2 - Exploit multi-token standards

Use multi-token standards (e.g., ERC-1155) when issuing multiple security tokens sharing comparable characteristics, to conserve blockchain storage and simplify architecture.

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp3

DP3 - Automated on-chain payout mechanisms for investors

Integrate on-chain settlement using claim capabilities in disbursement, empowering investors to control the timing and method of interest payments and removing reliance on issuer/platform trustwort...

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp4

DP4 - Restrict forced-transfer functions to regulators

Restrict particularly critical functions such as forced transfers to regulators only, to prevent abuse of power while complying with regulatory requirements.

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp5

DP5 - Implement smart-contract-based crypto securities registers

Implement a crypto securities register (CSR) within a smart contract for digitally tokenized bearer bonds, disrupting the traditional custodian chain and accelerating settlement.

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Paper design map

The default semantic design map canonicalizes stored design relationships; Raw links retains the complete technical Markdown-link view.

Design-knowledge map

5 stored concepts / 0 canonical semantic relationships

Concept types

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Publication metadata

Additional metadata represented in the current library record.

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{
  "type": "paper",
  "title": "Designing the future of bond markets: Reducing transaction costs through tokenization",
  "description": "Using a transaction-cost-theory lens, the paper designs an Ethereum-based bond prototype and derives five design principles for blockchain-based bond markets: apply modular design, exploit multi-token standards, automate on-chain payouts, restrict forced-transfer functions to regulators, and implement smart-contract-based crypto securities registers.",
  "resource": "https://doi.org/10.1007/s12525-025-00753-3",
  "authors": "David Cisar, Benjamin Schellinger, Jens-Christian Stoetzer, Vincent Gramlich, Tobias Guggenberger, Nils Urbach, Florian Lennart Weiss",
  "year": 2025,
  "venue": "Electronic Markets 35:9 (2025)",
  "methodology": "Design science research; transaction-cost-theory lens; Ethereum prototype; derivation of meta-requirements, design objectives and principles.",
  "dsr_grid": true,
  "dsr_solution_space": "Instantiation (prototype) plus a design theory (meta-requirements, design objectives, design principles).",
  "tags": [
    "bond-markets-tokenization-tac",
    "finance-bonds",
    "tokenization",
    "transaction-costs",
    "securities",
    "design-science-research",
    "blockchain"
  ]
}

Research paper

Designing the future of bond markets: Reducing transaction costs through tokenization

PaperOpen source resource ↗

Overview

Publication metadata and narrative from the current library record.

Authors: David Cisar, Benjamin Schellinger, Jens-Christian Stoetzer, Vincent Gramlich, Tobias Guggenberger, Nils Urbach, Florian Lennart Weiss
Year: 2025
Venue: Electronic Markets 35:9 (2025)
Methodology: Design science research; transaction-cost-theory lens; Ethereum prototype; derivation of meta-requirements, design objectives and principles.

blockchainbond-markets-tokenization-tacdesign-science-researchfinance-bondssecuritiestokenizationtransaction-costs

Designing the future of bond markets: Reducing transaction costs through tokenization

Summary

Artifact

An Ethereum-based bond prototype (security token offering) reducing transaction costs.

Methodology

Design science research; transaction-cost-theory lens; Ethereum prototype; derivation of meta-requirements, design objectives and principles.

Citations

DSR grid

Six dimensions represented in the current paper record.

Problem description

Bond markets face many inefficiencies and high transaction costs, and academic literature lacks generic design knowledge - under a transaction-cost lens - for designing blockchain-based bonds.

Input knowledge

Transaction cost theory (TAC) as the kernel theory; tokenization and securities literature; Ethereum token standards (ERC-1155); regulation such as MiCAR and eWpG.

Research process

Design science research: an Ethereum bond prototype, with meta-requirements, design objectives and principles derived under a TAC lens.

Key concepts

Bonds, design science research, transaction cost theory, blockchain, tokenization.

Solution description

Output knowledge

Five design principles: modular design, multi-token standards, automated on-chain payouts, restricting forced transfers to regulators, and smart-contract-based crypto securities registers.

Design knowledge

Directly linked concepts, grouped by their represented design-knowledge category.

Design Principle

Design Principle5

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp1

DP1 - Apply modular design of distinctive system components

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp2

DP2 - Exploit multi-token standards

Use multi-token standards (e.g., ERC-1155) when issuing multiple security tokens sharing comparable characteristics, to conserve blockchain storage and simplify architecture.

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp3

DP3 - Automated on-chain payout mechanisms for investors

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp4

DP4 - Restrict forced-transfer functions to regulators

Restrict particularly critical functions such as forced transfers to regulators only, to prevent abuse of power while complying with regulatory requirements.

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Design Principle

design-knowledge/bond-markets-tokenization-tac-dp5

DP5 - Implement smart-contract-based crypto securities registers

Implement a crypto securities register (CSR) within a smart contract for digitally tokenized bearer bonds, disrupting the traditional custodian chain and accelerating settlement.

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Paper design map

The default semantic design map canonicalizes stored design relationships; Raw links retains the complete technical Markdown-link view.

Design-knowledge map

5 stored concepts / 0 canonical semantic relationships

Concept types

Show relationship labels

Publication metadata

Additional metadata represented in the current library record.

Show additional metadata

{
  "type": "paper",
  "title": "Designing the future of bond markets: Reducing transaction costs through tokenization",
  "description": "Using a transaction-cost-theory lens, the paper designs an Ethereum-based bond prototype and derives five design principles for blockchain-based bond markets: apply modular design, exploit multi-token standards, automate on-chain payouts, restrict forced-transfer functions to regulators, and implement smart-contract-based crypto securities registers.",
  "resource": "https://doi.org/10.1007/s12525-025-00753-3",
  "authors": "David Cisar, Benjamin Schellinger, Jens-Christian Stoetzer, Vincent Gramlich, Tobias Guggenberger, Nils Urbach, Florian Lennart Weiss",
  "year": 2025,
  "venue": "Electronic Markets 35:9 (2025)",
  "methodology": "Design science research; transaction-cost-theory lens; Ethereum prototype; derivation of meta-requirements, design objectives and principles.",
  "dsr_grid": true,
  "dsr_solution_space": "Instantiation (prototype) plus a design theory (meta-requirements, design objectives, design principles).",
  "tags": [
    "bond-markets-tokenization-tac",
    "finance-bonds",
    "tokenization",
    "transaction-costs",
    "securities",
    "design-science-research",
    "blockchain"
  ]
}