The European Investment Bank (EIB) chooses HSBC and the Ethereum blockchain for its bonds

A blockchain-friendly Europe, really? – There European Investment Bank (EIB) has announced its intention to use the ethereum blockchain to issue digital bonds. An important step in the adoption of blockchain and cryptocurrencies, the traditional financial institutionsdespite their bitcoin killing urges, don’t seem not insensitive to new technologies.

Ethereum dubbed by the EIB to issue its bonds

Since its creation in 1958, the EIB has played a key role in financing projects in Europe. The EIB has issued obligations on the traditional market to finance its activities. It also explored new technologies to improve its finance processes. Not ignorant of the blockchainthe EIB had even already done some web3 trials.

For our case of the day, it is therefore an obligation to £50 million variable interest rate registered on the Ethereum blockchain which was announced by the institution. The anonymity of the parties concerned was strictly respected. Bonds, on the other hand, are stored by HSBC and its Orion platform. On their side, BNP Paribas Securities Services in Luxembourg, RBC And HSBC are once again in the project. These are the custodians allowing clients to invest in this bond.

Ethereum is the blockchain chosen by the EIB for the issuance of its bond

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Europe and the blockchain: an idyll that is not new

THE legal framework around representations of digital assets has been attracting the interest of financial institutions for several years. Australia, Germany, but also Sweden and France have been in the running for 4 years. Moreover, it is not not the first obligation digital issued by the EIB. The first dates from April 2021. The investment bank of the European Union had then deployed a bond of 100 million euros over two years entirely on Ethereum. In this direction, Ricardo Mourinho FelixVice-President of the EIB, aware of the importance of not missing the blockchain train, persists and signs these choices in a statement reported by our colleagues from Blockworks:

“Now is the time for more innovation in the financial sector (…) This new financial tool will provide additional capital flows that the EIB will invest in projects with global impact. »

But then, why this love for ethereum, would you ask us? Because it is a blockchain that will allow you to issue your famous digital bonds in complete transparencywith security And efficiency.

It is not yet time to show off, or even to brag. This use of the blockchain remains timid, but it is still a step forward for theadoption of so-called web3 technologies. However, Europe’s attitude towards the world of crypto-assets continues to be paradoxical and questionable. While on the one hand she regularly plots to orchestrate the death of bitcoin and cryptocurrencies, it does not seem however hate the opportunity that blockchain technology can bring him.

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