The issuance of this bond is part of the strategy to design the future of market infrastructures.
BBVA, the Inter-American Development Bank (IDB), and the BMEoperator of the Spanish Stock Exchange together with its technological partner ioBuildersannounced this week that they had issued tokenized securities using blockchain technology.
According to the organizations, Since February, we have been working on this project where ‘smart contracts’ have been used to carry out the processes of distribution, sale, settlement and corporate events, using electronic money tokenized by BBVA for the management of cash throughout the life of the the broadcast.
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Likewise, they have said that it was carried out under the framework of the LACChain alliancean IDB initiative to accelerate the use of ‘blockchain’ technology with an impact on development and that will allow BBVA to export the technology to Latin America, where access to alternative financing for projects, they say, is more limited.
On the part of BBVA, in addition to being an electronic money tokenizer, they reported that in the issuance of said bond it has played several critical roles, acting as digital custodian, digital structuring agent and ‘active bookrunner’ of the operation. On the other hand, Citi has been the agent entity and the investors of the bond have been Iberdrola and Renta 4.
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Regina Gil, head of global credit at BBVA, He explained that they wanted to know if blockchain operations could be executed with the current market infrastructure at the level of operations and interconnectivity of systems for placement banks and institutional investors. “This pilot reduces the cost and time of issuance, which opens up opportunities for smaller issuers and for less developed economies”he mentioned.
In this sense, Gustavo De Rosa, Vice President and CFO of the IDBstated that they were very happy to participate as an issuer in what is a pilot project and took the opportunity to thank BME, BBVA and ioBuilders, before commenting that through the Bank’s Treasury, they sought to continuously innovate, exploring new financial instruments and services that will advance the social and economic development agenda of member countries.
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“The rapid growth we have seen in the use of ‘blockchain’ technology and ‘smart contracts’ is evidence of the potential that this technology has in terms of transparency, programmability and redundancy in financial transactions”De Rosa said.
Finally, from BBVA they have said that the issuance of this bond in production with ‘blockchain’ technology, it is also framed within the strategy for designing the future of market infrastructures.
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