The Spanish banking giant acted as an issuer of bonds for $ 20 million on the Ethereum blockchain with a quarterly coupon of 1.98%.
According to the statement
Santander annual bond will exist on the blockchain until maturity. Santander Securities Services acts as a tokenization agent and custodian of cryptographic keys for tokenized bonds and tokenized funds.
“The funds used to complete the investment (intra-network supply versus payment) and quarterly interest income were also tokenized, that is, presented in digital form on the blockchain,” the bank explained.
Automating the entire process helped Santander reduce the number of intermediaries needed for the process, making the transaction “faster, more efficient, and easier.” Fintech startup London, Nivaura, provided technical support to Santander, while law firm Allen & Overy provided legal advice, according to a statement.
Blockchain bonds are gradually gaining popularity in the financial industry. In August, the World Bank sold
the second batch of bonds on the blockchain in the amount of $ 33.8 million; in total, the organization issued bonds on the blockchain in the amount of $ 108 million. In the spring, Societe Generale Bank also issued
$ 112 million bonds on the Ethereum blockchain.
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