EIB poised to deploy blockchain for bond sale
The European Investment Bank plans to use blockchain to sell bonds, potentially boosting use of the digital-ledger technology as a tool for the region’s debt market.
The European Union’s investment arm hired Goldman Sachs Group, Banco Santander, and Societe Generale to explore a so-called digital bond in euros, which would be registered and settled using blockchain, according to information from a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. Investor meetings for the inaugural sale will start 15 April and continue for some weeks.
The EIB has often been at the forefront of innovation in Europe’s debt capital markets, being among the first to issue green and sustainability bonds, as well as debt benchmarked against a new euro short-term rate called ESTR. A number of issuers globally including the World Bank, China Construction Bank Corp., JPMorgan Chase & Co. and National Bank of Canada have been experimenting with blockchain-based issuance in the past few years, but its use in debt markets is still far from mainstream.
