European investment bank wants to issue bonds via blockchain
The EIB has hired banks like Goldman Sachs and Société Générale to issue digital bonds via blockchain.
The European Investment Bank, an international financial institution owned by EU member states, is reportedly researching blockchain technology and then issuing digital bonds.
According to one Bloomberg report On Tuesday, the EIB hired major global banks such as Goldman Sachs, Banco Santander and Société Générale to look into a possible deal in a euro-denominated bond. This should be issued on a blockchain.
Bloomberg reported that the EIB plans to use blockchain technology to register and settle digital bonds. The investor meetings for the first sale are scheduled to start on Thursday and last for several weeks.
Cointelegraph asked the EIB for a comment but received no response by the editorial deadline.
Blockchain, the technology behind cryptocurrencies like Bitcoin (BTC) and ether (ETH), has been in recent years increasingly used in the bond market. According to HSBC offers Blockchain saves the bond market “more than ten times” cost by reducing the need for intermediaries and enabling issuance through smaller projects.
As the financing institution of the European Union, the EIB has often played a pioneering role in innovation in European debt capital markets. As early as 2007, the EIB issued the world’s first green bond, a so-called Climate Awareness Bond, issued.
The European Central Bank still wants to decide whether to research a digital euro. At the end of March, ECB President Christine Lagarde indicated that it would take at least four years to get a digital euro if the bank decides on a pilot project.