According to a new press release on November 29, The European Investment Bank (EIB) has issued a €100 million digital bond for the first time on a private blockchain-based platform, with the help of Goldman Sachs tokenization.
The latter, together with Société Générale Luxembourg, also act as on-chain custodians for the financial instrument. The bond bears interest at a coupon rate of 2.57% per annum with a maturity date of November 29, 2024, and is governed by Luxembourg law.
The Banque de France and the Banque Centrale du Luxembourg have participated in the project to provide a digital representation of central bank money in euros. The EIB states that “the transaction paves the way for future on-chain derivatives solutions, by using the first interest rate swap hedge represented through the common domain model developed by the industry.”
Also, the bond represents the “first cross-chain delivery-versus-payment (DVP) settlement using an experimental CBDC token [moneda digital emitida por el Banco Central]”.
Last April, the EIB successfully issued the first euro digital bond on a public blockchain. Goldman Sachs, Banco Santander and Société Générale led the sale of the two-year, €100 million digital bond. Regarding the novel issuance of digital bonds on a private blockchain, Ricardo Mourinho Félix, Vice President of the EIB, commented:
“Blockchain has the potential to change a wide range of sectors. It plays a central role in the success of Europe’s green and digital transitions, and strengthens our technological sovereignty. Innovation is part of the EIB’s identity and the issuance of This fully digital voucher is another important step to help develop a fully digital ecosystem.”
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