Blockchain technology has several features that make it one of the most valuable technologies in the world. Thanks to these features, it has gained use in several sectors of the global economy. In the financial space, the European Investment Bank wants to start using it to settle bonds.
EIB to settle bonds on a blockchain
The European Investment Bank (EIB) has revealed that it would start settling bonds in Euros using blockchain technology. EIB is the European Union’s lending and carries out various financial responsibilities in the region.
According to the Bloomberg report earlier today, the EIB has asked investment banks including Goldman Sachs, Banco Santander SA and Societe Generale AG to assess the feasibility of settling and registering the bonds using the blockchain technology.
Bloomberg cited an unnamed source in its report, adding that the first meeting will take place on April 15 and will continue for weeks. However, the source didn’t specify the date for the initial sale.
Blockchain technology continues to gain adoption
Although most traditional banks and financial institutions have been slow to accept cryptocurrencies, they quickly recognized the blockchain technologies’ unique features. Banks such as JPMorgan are already working hard to leverage the technology to improve cross-border transactions and several other aspects of their businesses.
The European Investment Bank has joined a growing list of banks offering state-backed blockchain bond issuance. Last year, Thailand’s apex bank launched a government-saving bonds program and now controls assets worth nearly $1.6 billion on the blockchain.
Blockchain adoption in the financial sector is expected to keep growing as more institutions realize the benefits of the technology.