Spanish multinational banking giant Santander has just redeemed $ 20 million in bonds using the Ethereum blockchain.
The company has made early repayment of blockchain-based bonds issued on September 10, 2019, which is said to indicate that the Ethereum public blockchain can be applied to securities issuance throughout the life cycle of the securities.
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Real Hammer: "Bonds can be managed on the blockchain through their entire life cycle"
John Whelan, head of digital investment banking at Santander, tweeted on December 10:
"We just made an early redemption of the blockchain-based bonds we issued on September 10, 2019. This clearly demonstrates that debt securities can manage their entire life cycle through the blockchain (used in this example) Is a public chain). "
Whelan is also the chairman of the board of directors of the Enterprise Ethereum Alliance (EEA), the world ’s leading blockchain alliance, and he has provided a public transaction on the Ethereum block browser Etherscan to prove the transaction. Since Santander Banks acted as both issuers and investors in the transaction, so Whelan disclosed both the issuer and investor's wallets in the transaction.
The news is an update on Santander's progress since it announced the issuance of its first end-to-end blockchain bond on September 12. The company said the move aims to make issuing bonds faster, more efficient and easier. Santander also said that the bond will remain on the Ethereum blockchain until its one-year maturity.
Global financial institutions aim at blockchain to improve securities issuance processes
As blockchain technology continues to receive attention in many industries, Santander is obviously not the only financial institution trying this technology in securities issuance, but he does use the Ethereum public blockchain to issue bonds slightly, other financial institutions Institutions generally use a private version of the Ethereum blockchain.
According to a report in mid-November, global banking giant HSBC started working with the Singapore Exchange and investment company Temasek to explore the use of blockchain to issue fixed income securities. In particular, HSBC intends to strengthen the bond issuance process and reduce related costs by applying tokenized securities and smart contracts.
In early October, the credit rating department of financial services giant Morningstar revealed that it was developing a blockchain platform for debt securities issued in the form of blockchain tokens.
On August 19, the World Bank again raised 50 million Australian dollars (about 33.8 million US dollars) through the sale of "blockchain debt instruments" (bond-i). In addition to the last sale of bonds, the World Bank issued a total of 160 million The Australian dollar (about $ 108 million) runs on the private Ethereum bond.
Moving forward, on April 23, financial services giant Societe Generale Bank announced that it would issue $ 112 million in Ethereum blockchain bonds in the form of securities tokens.