The European Investment Bank has purportedly hired banks including Societe Generale and Goldman Sachs to explore a digital bond, registered and settled by means of blockchain technology.
EIB, an international financial establishment owned by European Union member states, is purportedly inspecting blockchain tech to issue digital bonds.
As per a recent report published by Bloomberg, the European Investment Bank has appointed key global banks like Banco Santander, Goldman Sachs, and Societe Generale to look at a likely deal concerning a euro-denominated bond issued on a blockchain.
Referring to a person acquainted with the matter, Bloomberg mentions that the EIB is preparing to deploy blockchain technology for the registration and settlement of digital bonds. Investor meetings for the opening sale will allegedly begin on 15th April and continue for more than a few weeks.
Blockchain, the primary technology behind digital assets like Bitcoin and Ethereum, has been progressively applied in the bond market in recent years. As per HSBC, blockchain presents cost savings prospects of over ten times for the bond market, dipping the requirement for mediators and permitting issuance by minor projects.
The development comes as the European Central Bank prepares to decide on whether it will instigate exploring a digital euro. Last month, the President of the bank, Christine Lagarde proposed that the digital euro initiative would take at least 4 years, should the bank choose to continue with a pilot.
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