January 28, 2023

Santander Bank early redeemed bonds for $ 20 million on the Ethereum blockchain

Spanish multinational banking giant Banco Santander redeems $ 20 million bonds on blockchain Ethereum that were released in early fall.

Organization paid off earlyblockchain-based bonds issued in September this year. Head of Digital Investment Banking at Santander, John Whelan, tweeted:

“We just made an early repaymentour blockchain-based bonds that we issued on September 10, 2019. This clearly proves that debt securities can be managed with the help of blockchain throughout their entire life cycle. ”

Whelan provided public transaction data fromEtherscan Ethereum blockchain browser to confirm the operation. Since Santander acted as the issuer and investor in the transaction, Whelan disclosed information about transactions in the wallet of the issuer and investor.

In September, Santander announced that automationThe entire process of issuing bonds helped the bank reduce the number of intermediaries, which made the transaction faster, more efficient and easier. Santander is not the only financial institution experimenting with blockchain technology for issuing securities.

In November, it became known that HSBC Bank andThe Singapore Exchange is exploring blockchain opportunities for the bond market. In October, it was also reported that Morningstar Credit Ratings is developing a blockchain-based service for evaluating debt securities to be issued in the form of tokens.

In August, the World Bank sold a second batch$ 33.8 million worth of blockchain bonds; in total, the organization issued $ 108 million worth of blockchain bonds. In the spring, Societe Generale Bank also issued $ 112 million worth of bonds on the Ethereum blockchain.