Another compelling case study and success story on blockchain bonds unfolds with the European Investment Bank (EIB). On April 27, 2021, the EIB issued its first digital bond on a public blockchain in collaboration with Goldman Sachs, Santander, and Société Générale. The issuance of the bond in fully registered form, made possible by blockchain technology, eliminated the need for a central securities depository (CSD) and remarkably shortened the settlement time. A process that once spanned five days was now concluded within a single day, exemplifying the efficiency and rapidity of blockchain-enabled transactions.

The €100 million bond found its launchpad on the Ethereum platform, marking a resounding success. This sale serves as a significant indicator that capital markets stand poised to embrace blockchain technology. The anticipation now revolves around the increasing participation of public and private banks in this dynamic arena. More institutions are expected to follow in the EIB’s footsteps, further enriching this burgeoning market. Furthermore, the potential for bond sales, including environmentally conscious endeavors, to reach a broader spectrum of investors on various platforms is undeniable.

John Whelan, an astute engineer and cryptocurrency expert at the Spanish Bank, eloquently encapsulated the essence of this transformative shift. He stated, “I’m a true believer in the power of technology to change finance for the better of all of us. Blockchain is part of the bigger story of ever-increasing transparency, digitization, speed, and efficiency. In the long run, it can make capital markets acceptable to big companies, small firms, and even individuals. Thirty years ago, we observed holidays and sent home a postcard. One week later, it arrived. Presently we take a selfies and short clips, put it in an email or on social media, and within seconds, it is transmitted. That’s the benefit that blockchain brings.”