EIB sets up €100m digital bond on private blockchain
"Unlike some cryptocurrencies using blockchain technology, EIB blockchain bond issuances do not result in the consumption of significant energy," writes the bank.
New
According to a new press release on Nov. 29, the European Investment Bank, or EIB, has issued a first-ever €100 million digital bond denominated in euros on a private blockchain-based platform. blocks with the help of Goldman Sachs tokenization.< /p>
The latter, together with Société Générale Luxembourg, also act as on-chain depositaries for the financial instrument. The bond bears interest at a coupon rate of 2.57% per annum with a maturity date of November 29, 2024 and is governed by Luxembourg law.
The Banque de France and the Banque centrale du Luxembourg participated in the project to provide a digital representation of central bank money in euros. EIB says "the transaction paves the way for future on-chain derivative solutions, using the first interest rate swap hedge represented by the industry-developed common domain model."
Furthermore, the bond represents the "first cross-chain delivery versus payment (DVP) settlement using an experimental CBDC [Central Bank Digital Currency] token".
Last April, the EIB successfully issued the first euro digital bond on a public blockchain. Goldman Sachs, Banco Santander and Societe Generale led the sale of the two-year €100 million digital bond. Regarding today's new digital bond issue on a private blockchain, Ricardo Mourinho Félix, EIB Vice-President, commented:
"Blockchain has the potential to disrupt a wide range of sectors. It plays a central role in the success of Europe's green and digital transitions, and reinforces our technological sovereignty. Innovation is part of the identity of the EIB and issuing this all-digital bond is another important step in contributing to the development of an all-digital ecosystem."
"Unlike some cryptocurrencies using blockchain technology, EIB blockchain bond issuances do not result in the consumption of significant energy," writes the bank.
New
According to a new press release on Nov. 29, the European Investment Bank, or EIB, has issued a first-ever €100 million digital bond denominated in euros on a private blockchain-based platform. blocks with the help of Goldman Sachs tokenization.< /p>
The latter, together with Société Générale Luxembourg, also act as on-chain depositaries for the financial instrument. The bond bears interest at a coupon rate of 2.57% per annum with a maturity date of November 29, 2024 and is governed by Luxembourg law.
The Banque de France and the Banque centrale du Luxembourg participated in the project to provide a digital representation of central bank money in euros. EIB says "the transaction paves the way for future on-chain derivative solutions, using the first interest rate swap hedge represented by the industry-developed common domain model."
Furthermore, the bond represents the "first cross-chain delivery versus payment (DVP) settlement using an experimental CBDC [Central Bank Digital Currency] token".
Last April, the EIB successfully issued the first euro digital bond on a public blockchain. Goldman Sachs, Banco Santander and Societe Generale led the sale of the two-year €100 million digital bond. Regarding today's new digital bond issue on a private blockchain, Ricardo Mourinho Félix, EIB Vice-President, commented:
"Blockchain has the potential to disrupt a wide range of sectors. It plays a central role in the success of Europe's green and digital transitions, and reinforces our technological sovereignty. Innovation is part of the identity of the EIB and issuing this all-digital bond is another important step in contributing to the development of an all-digital ecosystem."
What's Your Reaction?
