Leading financial institutions Goldman, Santander, and SocGen join forces to aid the European Investment Bank in releasing a €100 million public blockchain-based bond.
The European Investment Bank (EIB) is making history by issuing a two-year AAA-rated bond on the Ethereum blockchain. This marks the first time that EIB bonds are being sold to third parties.
The bond, targeted at professional clients, is set to be issued on 28 April. Goldman Sachs, Santander, and Société Générale have been mandated as joint lead managers for the €100 million bond issuance.
In a significant milestone, the bond issue will utilise central bank digital currency for settlement. This follows recent trends in the financial industry, where digital currencies are increasingly being adopted for financial transactions.
Société Générale and Santander have both previously issued bonds on the public Ethereum network. However, it's worth noting that the previously issued bonds by these banks were bought by associated entities, not third parties.
The EIB has confirmed that the settlement for the bond issue will indeed use central bank digital currency. This is a departure from the previous bond issues, where associated entities were the buyers.
The search results do not provide the name of the bank manager responsible for the issuance of the bond. Two weeks ago, it was rumoured that the bond was in the works, but the official announcement has only recently been made.
This move by the EIB is a testament to the growing acceptance of blockchain technology in the financial sector. As more institutions explore the potential of blockchain, we can expect to see more innovative solutions in the future.
