EIB announces first euro-denominated blockchain bond
New York City: The European Investment Bank (EIB), Goldman Sachs Bank Europe, Santander, and Société Générale are the four financial institutions that have collaborated to establish the Venus initiative. The company has introduced a second digital bond valued in euros that is stored on a private blockchain.
The European Investment Bank (EIB) has been in the forefront of advancing the various degrees of digitalization that are being implemented in the capital markets. Its most recent development is this native bond that was issued on a private blockchain and was just introduced.
In addition to being the first project on a private blockchain, it also has the distinction of being the first syndicated digital bond to be issued by a public institution and to be allowed to the official list of securities traded on the Luxembourg Stock Exchange. In collaboration with the Banque de France and the Banque centrale du Luxembourg, it publishes the first digital bond to have settlement modalities that take place on the same day. The following is what Ricardo Mourinho Félix, Vice President of the EIB, had to say in response to the launching:
“Blockchain technology has the potential to cause disruption across a broad variety of industries. It is of paramount importance to the accomplishment of Europe’s green and digital transitions, as well as to the fortification of our technical independence. The European Investment Bank prides itself on being innovative, and the issuance of this totally digital bond is another significant step in contributing to the development of a fully digital environment.
The Managing Director of Digital Assets of Santander, John Whelan, made the following statement:
“Santander is thrilled to cooperate with the EIB once again on this pioneering bond transaction that sets a new milestone in the digital securities market,” Santander said in a statement.
The Global Head of Digital Assets at Goldman Sachs, Mathew McDermott, made the following statement:
“With this new digital bond, EIB is again showing its leadership in capital markets, pushing innovation further by pricing the first syndicated digital bond on a private permissioned chain and settling T+0 across two blockchain networks,” said the European Investment Bank (EIB). “In addition to demonstrating its leadership in capital markets, EIB is also advancing the state of the art.”
According to Arnaud Delestienne, who is a member of the Executive Committee at LuxSE and also the Director of International Capital Markets at LuxSE,
“We are happy to expand on our historic and strong partnership with the EIB, and for our exchange to have been selected as the venue of choice for this digitally native bond,” said the company.
TASE bonds are an upcoming kind of government crypto bonds that you should keep an eye out for.
It would seem that the EIB is not the only government agency that has an interest in issuing “crypto bonds.” A few other nations, such as Israel and El Salvador, are doing something quite similar. The Tel Aviv Stock Exchange (TASE) released a statement on the 19th of October stating that the Israeli government is making preparations to use blockchain technology in order to issue government bonds.
TASE has said that it utilizes blockchain technology in order to decrease costs, minimize risk, assure transparency, and shorten the amount of time required to issue and clear government bonds. Despite the fact that TASE’s intentions are still very much in the early stage, the organization has a high level of hope about the outcome of their endeavor.
Remember that El Salvador, under the presidency of Nayib Bukele, has had a remarkable history with Crypto, and it seems that he is not letting up on the gas pedal at all. It is anticipated that El Salvador’s planned “volcano bonds,” which would be backed by bitcoin, would generate one billion dollars for the government. The newly written digital securities statute is 33 pages long, and one of the innovations that will accompany it is the issuance of El Salvador bonds.
The law has previously been brought to the Legislative Assembly of El Salvador by Maria Luisa Hayem Breve, who serves as the minister of Economy for El Salvador.
The purpose of this bill is to create a National Digital Assets Commission, which would be tasked with supervising all regulatory concerns pertaining to digital asset issuers, service providers, and other players in the “public offering process.”