European Investment Bank Issues $121M Digital Notes Using Ethereum

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European Investment Bank Issues $121M Digital Notes Using Ethereum

Goldman Sachs, Banco Santander SA and Societe Generale AG served as joint managers.

The European Investment Bank (EIB), the lending arm of the European Union, used Ethereum technology to issue €100 million ($121 million) in two-year digital notes for the first time, the EIB said in a statement.

 

  • Goldman Sachs, Banco Santander SA and Societe Generale AG served as joint managers for the notes, issued on April 28.

 

  • The EIB said the transaction is a series of bond tokens on a blockchain, where investors purchase and pay for the security tokens using traditional fiat.

 

  • The notes have a zero percent coupon and will be registered on the blockchain, according to a Bloomberg report.

 

  • The number of banks joining the club for state-backed blockchain bond issuance has been expanding. In September, according to reports, the Bank of Thailand launched a blockchain-enabled platform for the issuance of government saving bonds.

 

  • In November, the China Construction Bank (CCB) tapped Labuan-based digital asset exchange Fusang for the issuance of $3 billion worth of debt securities over a blockchain.

By Tanzeel Akhtar, CoinDesk