Governments around the world often depend on bonds to fund infrastructure and services, but the path for citizens to invest in these securities has historically been fraught with barriers. Libeara, a fintech platform founded by former banking executive Aaron Gwak, aims to change this by democratising access to government bonds and fostering a culture of savings.

“At its core, our goal is to make eligible investments more accessible,” says Gwak, who previously spent over 13 years at Standard Chartered Bank overseeing debt origination in ASEAN. “Accessibility is not just about whether you can access something—it’s about eligibility. Do you know what you’re buying, and should you be buying it?”

Libeara’s platform enables governments to issue bonds directly to citizens in low denominations, eliminating unnecessary intermediaries. This approach not only stabilises government funding but also provides citizens with a secure and straightforward investment option.

The platform features bank-grade security, comprehensive compliance controls, and a seamless user experience across web and mobile applications.

Gwak highlights the rationale behind this innovation: “Government bonds are almost your birthright. You live in a country, earn and use its currency. Why shouldn’t you be able to lend money directly to your government instead of depositing it in a bank that lends it on your behalf?”

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This philosophy underpins Libeara’s mission. Traditionally, investing in government bonds has been cumbersome, requiring significant thresholds that exclude retail investors.

“The costs of KYC and regulatory compliance often make it infeasible for securities companies to cater to small investments,” Gwak explains. Libeara seeks to address this by lowering these barriers, allowing even modest investors to participate.

Driving change with tech

Libeara’s tech extends beyond direct bond purchases. The platform also supports tokenised government bond funds, offering investors an alternative route to participate in this market. In collaboration with a licensed fund manager in Singapore, Libeara enables customers to buy tokenised fund securities.

“The biggest advantage of token technology is twofold,” says Gwak. “First, it reduces the need for intermediaries. Second, it enhances mobility. Tokens are not just records of investments; they can also be utilised for other purposes, enabling greater flexibility.”

By tokenising investments, Libeara aligns with broader trends in the financial sector. Gwak recalls the earlier days of manual processes in banking and sees tokenisation as the natural evolution of securities management: “Behavioural changes will follow technological advancements. As systems articulate investment opportunities more clearly, adoption will grow organically.”

Libeara’s initial milestones include proof-of-concept projects in Singapore, the Philippines, and Hong Kong.

“In 2021, we realised this was a venture-class problem,” Gwak reflects. “Our technological, legal, and securities expertise allowed us to articulate a clear vision, which ultimately led to Libeara’s creation.”

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These early projects demonstrated the platform’s potential to streamline access to government bonds, even across borders. “For instance, if you’re in Singapore and want to invest in Indonesian government bonds, the process is often complicated,” Gwak notes. Libeara simplifies such transactions, providing a direct pathway for retail investors.

The path ahead

Despite its promise, Libeara faces the challenge of educating consumers about digital assets and tokenised securities. Gwak acknowledges that societal adoption of new technologies requires time and effort. “Education is crucial, but so is demonstrating the practical benefits. Life becomes easier for individual investors when technology reduces complexity,” he says.

Regulators also play a pivotal role. Drawing parallels to the Monetary Authority of Singapore’s approach to consumer protection, Gwak emphasises the importance of informed investment decisions: “It is not just about whether you can buy something; the first question should always be whether you should buy it and if you understand it.”

Libeara’s broader mission is to bridge gaps in financial inclusion. By enabling governments to issue bonds directly to citizens—both domestically and abroad—the platform fosters a deeper connection between individuals and public finance.

“Government bonds are securities that everyone should be able to own, but access and eligibility have historically been mismatched,” Gwak asserts. “We are working with governments to change that dynamic, ensuring citizens can invest in their nation’s future with ease.”

As Libeara continues to expand its footprint, its focus remains on empowering individuals through accessible, secure, and innovative investment solutions. “This is not just about technology; it’s about reshaping the way we think about savings and investment. The trajectory is clear, and we’re excited to be part of this transformation,” says Gwak.

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Image Credit: Libeara

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