European Investment Bank launches first-ever sterling denominated digital bond

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European Investment Bank launches first-ever sterling denominated digital bond Sterling silver EuropeanInvestmentBank

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here! According to the announcement, the EIB has priced its first £50 million digital bond using a combination of private and public blockchains operated and accessed via HSBC Orion – the bank’s tokenization platform.

HSBC Orion will be tasked with holding the dematerialized digital bonds in digital securities accounts while BNP Paribas, HSBC, and RBC Capital Markets will act as custodians for existing clients who invest in this digital bond. “The time has come for further innovation in the financial sector, and we are pleased to issue the first digital bond in pound sterling on a private and public blockchain with the support of our counterparts,” said EIB Vice-President Ricardo Mourinho Felix. “This new financial tool will provide additional capital flow that the EIB will invest in projects with global impact.”

As the world moves towards the digitalization of capital markets, this release marks an important step in that process as financial institutions around the world look to adopt blockchain technology to “significantly enhance global debt capital market operations,” said Arnaud Delestienne, LuxSE Director of International Capital Markets.

 

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