Spain's largest bank Santander issued a $ 20 million bond and tokenized quarterly coupons on the Ethereum blockchain. The bank has delivered delivery against payment on chain.
? Santander launches the first end-to-end #blockchain bond. More details at ? https://t.co/uW76t6xIiT pic.twitter.com/J8KFmH3yoY
– Banco Santander (@bancosantander) September 12, 2019
An annual bond with a quarterly coupon of 1.98% was acquired at a market price by one of the divisions of the financial and credit group Santander.
The custodian and tokenization agent was Santander Securities Services, and the dealer was Santander Corporate and Investment Banking (CIB).
The bond will remain exclusively on the blockchain.
According to representatives of the bank, the process took five days, and the use of technology has reduced the number of intermediaries.
Santander claims to be the first financial institution tokenizing the entire process of issuing and settling bonds. The blockchain startup Nivaura, which issued the first Ethereum-based bonds in 2017, helped to complete the task .
At the same time, the bank is interested in blockchain technology, but not in cryptocurrencies.
Recall that in August, the World Bank together with Australia's largest bank, Commonwealth Bank of Australia, raised more than $ 33 million through the implementation of public blockchain bonds.
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