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The news comes after Santander issued its first end-to-end blockchain bond, as announced on Sept. 12. The company said that the move intends to make issuing bonds faster, more efficient and simpler. Santander also said that the bond will remain of the Ethereum blockchain until the end of its one-year maturity.
As blockchain technology continues to gain traction with a number of industries, Santander is evidently not the sole financial institution to experiment with the tech in securities issuance.
As reported in mid-November, global banking giant HSBC started exploring the use of blockchain for issuance of fixed income securities in partnership with Singapore Exchange and investment firm Temasek. Specifically, HSBC intends to bolster the bond issuance process and reduce associated costs by applying tokenized securities and smart contracts.
Earlier in October, the credit rating arm of financial services giant Morningstar revealed it was working on a blockchain platform for debt securities issued as tokens on a blockchain.
