The European Investment Bank hired Goldman Sachs, Banco Santander SA, and Societe Generale to explore digital bonds in euros, according to Bloomberg. The digital bond would be registered and settled using blockchain.
EIB’s plan boosts the use of digital-ledger technology as a tool for the region’s debt market.
Investor meetings for the inaugural sale will start on April 15 and continue for some weeks
EIB has been at the forefront of innovation in Europe’s debt capital markets, being among the first to issue green and sustainability bonds
EIB also issued debt benchmarked against a new euro short-term rate called ESTR
The move comes after ECB President Christine Lagarde hinted of a launch of a digital currency around the middle of this decade.
Several global issuers, including the World Bank, China Construction Bank, JP Morgan, and National Bank of Canada, have been experimenting with blockchain-based issuance in the past few years.
Blockchain use in debt markets is still far from mainstream and has faced hurdles of wider adoption.
