European Investment Bank launches the first euro-denominated digital bond on a private blockchain
The venus project was launched by the European Investment Bank (EIB) in collaboration with Goldman Sachs Bank Europe, Santander, and Société Générale. It is the company’s second euro-denominated digital bond on a private blockchain.
The European Investment Bank(EIB) has been at the forefront of spearheading various levels of capital market digitization. Its most recent innovation is a native bond issued on a private blockchain. It is the first syndicated digital bond issued by a public institution to be admitted to the Securities Official list of the Luxembourg Stock Exchange, as well as the first project on a private blockchain.
Reactions and feedback on the Venus project
In response to the launch, EIB Vice President Ricardo Mourinho Félix stated:
“Blockchain has the potential to disrupt a wide range of industries,” says one expert. It is essential for the success of Europe’s green and digital transitions, as well as our technological sovereignty. The EIB’s identity is built on innovation, and the issuance of this fully digital bond is another important step toward the development of a fully digital ecosystem.”
Santander’s Managing Director of Digital Assets, John Whelan, stated:
“Once again, Santander is pleased to collaborate with the EIB on this innovative bond transaction, which marks a watershed moment in the digital economy.”
The Global Head of Digital Assets at Goldman Sachs, Mathew McDermott, said:
“With this new digital bond, EIB demonstrates its continued leadership in capital markets by pricing the first syndicated digital bond on a private permissioned chain and settling T+0 across two blockchain networks.”
Upcoming government crypto bonds to look out for
TASE bonds
The EIB appears to be not the only government institution interested in issuing “cryptocurrency bonds”; Israel and El Salvador appear to be doing something similar. The Tel Aviv Stock Exchange (TASE) announced on October 19th that Israel’s government is planning to use blockchain technology to issue government bonds. TASE stated that it uses blockchain technology to reduce costs, mitigate risk, increase transparency, and reduce the time it takes to issue and clear government bonds.
El Salvador bonds
Remember that El Salvador, under President Nayib Bukele, has a spectacular history with Crypto, and he does not appear to be slowing down. The proposed bitcoin-backed “volcano bonds” in El Salvador are expected to raise $1 billion for the government. El Salvador bonds will be among the developments included in the 33-page draught digital securities bill.
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