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European Investment Bank explores the use of blockchain for bond issuance

Tuesday 13 April 2021 12:40 CET | News

European Union’s (EU) bank, the European Investment Bank (EIB), has hired three investment banks to explore a digital bond issuance that would use blockchain for registration and settlement.

The banks are Goldman Sachs, Santander, and Société Générale, with investor meetings to start 15 April 2021, according to a Bloomberg report cited by Ledger Insights. Both Santander and Société Générale have previously issued bonds on a public blockchain.

However, for both financial institutions, the bonds were bought by internal group companies, and the legal issues were the biggest hurdles, the online publication adds. Most bond issuances to date have used permissioned blockchains.

Several other governmental or government-related institutions such as World Bank, banks in Thailand and the Philippines, have already used permissioned blockchains for bond issuance. At the moment, there are numerous bond platforms in development worldwide, including Nomura and SBI in Japan, and Temasek and SGX in Singapore. Others include BBVA, LedgerEdge, Monetago, Bond180 and Agora.


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Keywords:
Categories: Banking & Fintech | Payments General
Countries: Europe
This article is part of category

Banking & Fintech