EIB Will Release $121 Million Digital Bonds On Ethereum

European Investment Bank confirms that it is releasing $121 Million worth of digital bonds built on the Ethereum platform.

On 28 April, EIB released the statement on its first blockchain-based digital bond, which has a maturity of two years for investors.

The non-profit organization mentioned that it had collaborations with leading multinational banks for the project. Banks that include The Central Bank of France, Goldman Sachs, Societe Generale, and Santander.

The European Union’s bank plans to use the project as proof of its commitment to remain a forerunner in green finance worldwide. The Vice President of the organization, Mourinho Felix, expressed confidence in the project. He stated that it can be key for EIB to become more effective in its search for alternative sources for financing its projects.

The digitization effort by EIB can benefit investors in many ways. IT can help cut down costs from third-party services, make transactions faster, and improve the transparency of the system. According to Bertrand de Mazières, DG Finance at EIB, the innovation will not only further prove the organization’s relevance in the capital market but also add value for all parties involved.

One clear implication of this project is that more investors will need to reconsider blockchain technology as an innovation for the future of the capital market, as well as a means to trade financial securities.

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Wasilat MustaphaWasilat Mustapha

Author: Wasilat Mustapha

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