EIB launches $61M sterling-denominated digital bond

The European Investment Bank (EIB) launched its first pound sterling-denominated digital bond. The bank continues to show interest in issuing blockchain-based bonds.

The European Investment Bank (EIB) launched its first pound sterling-denominated digital bond using blockchain technology. The bank published a post on 31 January, noting that it is “continuing market development in the digitization of capital markets with the issuance of a fully digitally native bond denominated in pound sterling.”

The bond is worth 50 million pounds, or about $61.5 million. They carry a floating interest rate and are registered on a private blockchain. There is also a public blockchain mirror that provides increased transparency on an anonymous basis.

The digital bond is accessible through HSBC Orion, the bank’s tokenization platform. The bank said the benefits would include lower costs, improved efficiency and real-time data synchronization. BNP Paribas, HSBC, and RBC Capital Markets deliver the system’s architecture.

ECB Vice President Ricardo Mourinho Felix celebrated the event, saying,

“…the time has come for further innovation in the financial sector, and with the support of our counterparties, we are pleased to issue the first digital bond denominated in pounds sterling on a private and public blockchain. This new financial instrument will provide additional capital flows that the EIB will invest in projects with a global impact.

EIB continues its foray into blockchain-based digital bonds

The EIB has previously issued digital bonds on a blockchain. In April 2021, the bank issued a $100 million 2-year bond using blockchain technology. The issue took place in partnership with the Banque de France. Specifically, it issued $121 million in digital notes using Ethereum.

In the last quarter of 2022, the bank announced Project Venus, the first euro-denominated digital bond on a private blockchain. The EIB is certainly keen to take advantage of the technology, as are other established financial institutions.

Established Institutions Tapping Into Blockchain Technology

Many established banks and financial institutions are harnessing blockchain technology. In November 2022, Hong Kong’s financial authorities announced that they would issue the world’s first tokenized government green bonds. He followed up by saying that it would issue tokenized green bonds for institutional investors.

The Bank for International Settlements (BIS), the Hong Kong Monetary Authority and the United Nations Climate Change Global Innovation Hub are also working on green bonds. Meanwhile, the National Australia Bank said it would issue a green stablecoin.


BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

Source link

Leave a Comment