The capital market gap: A dedicated SME bond exchange in the United States

More than 90% of America's earning population - representing near 257 million people - are still not able to participate in any meaningful fashion of corporate bond investments. This exclusion is not incidental but is built into longstanding structural, regulatory and operational constraints that disproportionately restrict access to fixed income securities. At the same time, Small and Medium Enterprises (SMEs), for all their central role in driving national productivity, innovation, job creation and economic resilience, are faced with persistent barriers to raising capital via the world's deepest and most liquid corporate bond market. As a result, a large portion of the US economy is effectively locked out of one of its most stable and scalable financing mechanisms. We live in an age defined by fast-paced change - an age where the old limitations are being broken down and ANYTHING IS POSSIBLE, thanks to the strategic use of technology. The intersection of digitization, financial innovation, blockchain systems and alternative capital raising models has proven the potential to transform long established markets. These technological advances not only challenge outdated assumptions, but also present unprecedented opportunities to democratize the access to corporate bond markets. This paper examines the economic consequences of the exclusion of middle markets from fixed income investing, and focuses on how the exclusion contributes to a lack of wealth creation, capital efficiency, and economic growth more broadly. It further suggests viable and technology-enabled solutions that can address structural deficiencies that currently hamper the ability of individual investors and SMEs. By rethinking the architecture of markets, and with the inclusion of new, transparent, and scalable mechanisms, the paper makes the case that increased participation in the corporate bond ecosystem isn't just desirable, but necessary, to create a more equitable, competitive, and future-ready U.S. financial system.