The European Investment Bank (EIB), the lending arm of the European Union, announced yesterday it has launched its first bond on the Ethereum blockchain.
According to the institution, the transaction consists of a series of digital bonds on a blockchain in which investors buy and pay for security tokens using traditional fiat money.
The bond, which was issued yesterday, has a value of €100 million ($121 million) and matures on April 28, 2023.
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The subscribers' money is represented as a central bank digital currency (CBDC) on the public blockchain of the second largest crypto on the market.
It must be noted that Goldman Sachs, Banco Santander SA and Société Générale AG have acted as joint managers for the notes.
The EIB claims bond digitization offers a lot of benefits, such as reduced fixed and intermediaries costs, improved market transparency and faster settlement speed.