EIB to use blockchain technology for bond trading – The Paypers

EIB to use blockchain technology for bond trading – The Paypers

The European Investment Bank (EIB) has announced to Bloomberg that blockchain technology is to be used to handle bond purchases and sales in the future.

The commercial banks Goldman Sachs, Banco Santander, and Société Générale have been commissioned by the EIB to design a ‘digital Euro Bond’ based on blockchain technology. According to Bloomberg, the first investor meeting will take place on 15 April 2021, however the EIB confirmed that the date for the first sale is still unknown.

In 2019, the EIB was involved in the development of a blockchain platform for the issuing and processing of European money market papers (Eurocommercial Paper or ECP) ​​together with the auditing company Ernst & Young, the Santander Bank and the clearing house Euroclear. The premise was that blockchain technologies would save time and resources when issuing money market papers, as well as when dealing with cross-border issues and processing eligible contract participants (ECPs). The current blockchain bond project of the EIB could build on these findings.