EIB issued the first ever digital bond in pounds sterling
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The European Investment Bank (EIB) has issued its first-ever £50m digital bond using a combination of private and public blockchains managed and accessible through the HSBC Orion tokenization platform. This is stated in the bank’s message.
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What is known
The agreement is carried out in accordance with the recently adopted legislative framework of Luxembourg, developed for the issuance, transfer and storage of dematerialized securities on the infrastructure of distributed ledger technology (DLT).
The encrypted private blockchain serves to register the legal ownership of digital bonds and provides the operational basis for managing the floating-rate instrument and its lifecycle events.
The public blockchain is used for informational purposes and provides increased transparency for investors and the market for ownership of digital bonds on an anonymous basis.
Dematerialized digital bonds will be stored in digital securities accounts opened at HSBC Orion. BNP Paribas Securities Services in Luxembourg, RBC and HSBC will act as custodians for existing clients investing in these digital bonds.
The architecture, distributed between BNP Paribas, HSBC and RBC Capital Markets, assumes that HSBC will act as a central custodian of accounts registering transactions with digital bonds.
It should be noted that last year EIB in tandem with Goldman Sachs, Santander and Societe Generale issued a two-year bond for 100 million euros using public blockchain technology.
Author: 
News feed editor Anna Nedogybchenko. She writes on the following topics: Finance, banks, economy, investments
Source: Ministry of Finance
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