A Floating Rate Bond is a type of bond that has an interest rate which changes periodically, usually in relation to a benchmark rate. This means that instead of offering a fixed return, the yield adjusts based on market conditions.In the context of blockchain and cryptocurrencies, Floating Rate Bonds can be implemented through smart contracts. These contracts automate the process of interest adjustments based on predetermined criteria, ensuring transparency and efficiency.Investors may prefer Floating Rate Bonds because they can potentially offer higher returns when interest rates rise. However, they also come with risks, as lower rates can mean reduced income compared to fixed-rate alternatives. These bonds can also be tokenized, allowing for easier trading and liquidity on decentralized platforms. This process enhances access for a broader range of investors, contributing to the growing evolution of finance. In summary, Floating Rate Bonds offer a dynamic investment option that aligns with changing market conditions, combining traditional finance concepts with innovative blockchain technology.