The European Investment Bank (EIB) has recently made a promising announcement for the users and clients. The firm has announced the launch of digital bonds that will be based on the blockchain network. The reports claim that this is the first time the EIB has issued digital bonds with the help of blockchain technology.
The EIB is owned by the state members of the European Union and exists as an investment bank. The EIB made the announcement around the issuance of the digital bonds on Wednesday, April 28, 2021.
In the initial part of the issuance, the EIB has proceeded with issuing $121 million worth of digital bonds. For now, these digital bonds are in the possession of the investors who are the key players in the investment markets.
The European Investment Bank (EIB) exists as a non-profit organization and is European Union’s lending arm. The firm has announced that the digital bonds it has launched are based on the technology powered by the Ethereum blockchain.
Prior to the recent announcement, the European Investment Bank (EIB) had made an announcement in regards to digital bonds. The firm had revealed that it was working on the digital bonds project and had the support of three major firms. The names of these well-renowned firms were Societe Gererale, Santander, and Goldman Sachs.
The European Investment Bank revealed that the digital bond project received the support of an unusual entity. According to EIB, even the Banque de France contributed to the development of digital bonds. The firm revealed that the payments from the investors will be represented in the form of CBDCs on the blockchain.
The CBDCs would be the payments the investors would make in order to acquire the digital bonds from the Ethereum blockchain. The European Investment Bank (EIB) revealed that the technology it currently has would not be limited to just projects within the EIB space.
These projects would expand way beyond the EIB jurisdictions and would reach other institutions for adoption. It is only a matter of time when the financial firms would realize the importance of digital bonds in the financial systems.
By taking this first leap, the European Investment Bank (EIB) has become the pioneer in the issuance of digital bonds. The firm will become the beacon of trust, sustainability, and loyalty among the existing and upcoming investors.
It would lead the digital bond space so the rest of the startups can follow it and come up with more innovations in the sector.
With this new project, the EIB will be able to take the traditional capital markets to the digitalized capital markets. Once that happens, even the participants in the digitalized capital would be able to benefit from that.