It has been reported that the European Investment Bank is in the process of exploring blockchain technology. The European Investment Bank is owned by the states of European Union members and it exists as an international financial institution.
The reports suggest that the European Investment Bank is doing it as it is planning to issue bonds backed by blockchain technology.
Bloomberg, one of the major reporting firms shared information around EIB’s activities in the blockchain sector on Monday, April 12, 2021. The firm revealed that EIB is seeking the support and services of several major banks from all over the world.
The EIB has revealed that it has hired firms such as Societe Generale, Banco Santander, and Goldman Sachs. The European Investment Bank is currently collaborating with several international banks in order to issue new blockchain-based bonds. The EIB is aiming to launch blockchain-backed bonds that will have denominations in the form of euros.
An inside source from the European Investment Bank has revealed that the bank is aiming to adopt blockchain technology for a couple of purposes. The purposes include settlement of digital bonds and the registration of the digital bonds.
The source has also revealed that the inaugural meetings of the investors for the blockchain-based bonds will commence on April 15, 2021. The source has also confirmed that these meetings will go on for several weeks in order to bring more innovation and ideas to the table.
Following the reports of EIB launching the blockchain-based bonds, several media sources tried getting in touch with EIB representatives for comment. However, the European Investment Bank is yet to give any response or make any comment on the recent developments.
Over the course of time, the technology from the likes of Ethereum (ETH) and Bitcoin (BTC) has been widely adopted for the issuance of bonds. The cryptocurrency-like technology is constantly being adopted and integrated into the bonds market.
The best part of the adoption of the technology is that the users are appreciating the new technology. Since the implementation of the technology, the sales and issuance of the bonds have increased significantly.
Even one of the largest global banks, HSBC has talked about the utility and benefits of the blockchain-based bonds technology. The global bank has claimed that with the usage of blockchain-based bonds, the companies can lower the cost of processes.
This technology can offer companies huge opportunities of saving money on the costs of providing bond services to the users. The stats show that the bond markets get to save 10 times more money than they do from the traditional markets.
The technology will also offer small businesses to develop and launch their own bonds for their employees as well as other users.