Cryptocurrency transaction tracker Whale Alert tweeted about the bond tokenized on the Ethereum Blockchain with Spanish banking giant Santander, which racked up $ 99,000 in interest during the first quarter.
The $ 20 million dollar bond, first settled in September, was represented by a custom Ethereum token, with another token representing cash in an escrow account.
https://twitter.com/whale_alert/status/1204345990045679616
According to a published statement:
"Thanks to this automation, the one-year maturity bond has reduced the number of intermediaries required in the process, making the transaction faster, more efficient and simple."
Santander's Head of Digital Investment Banking, John Whelan, stated that the early redemption of the bond issued in September “demonstrates unequivocally that a debt guarantee can be managed throughout its entire life cycle on a Blockchain (public in this case) ”.
Santander also ensured that the crypto keys for token security and cash were taken into custody.
The Spanish bank is the only entity that issues bonds on a public chain, unlike the other institutions that have issued bonds based on Blockchain, such as the World Bank, which raised $ 34 million in August, after the sale of a private Ethereum backed by a bond, facilitated by the Commonwealth Bank of Australia, RBC Capital Markets and TD Securities.
Earlier this year, Santander committed to investing € 20 billion to digitize its information technology in the future. The banking giant also announced the use of Ripple's Liquidity On Demand (ODL) services for four new payment brokers that facilitate remittances.
With Ethereum focusing more on DeFi and a rising rate of traditional asset issuance on decentralized platforms, this could be the beginning of a new era of “Challenge”.
