The agency has carried out an early reimbursement of the blockchain-based bond that was issued on Sept.10, 2019, which purportedly exhibits that the general public Ethereum blockchain could be used to securities issuance throughout the total lifecycle of a safety.
“Debt security can be managed through its full lifecycle on a blockchain”
John Whelan, head of Digital Investment Banking at Santander, tweeted on Dec. 10:
“We just performed an early redemption of our blockchain-based bond that we issued on September 10th, 2019.This unequivocally proves that a debt security can be managed through its full lifecycle on a blockchain (public in this case).”
Whelan, who in addition chairs the board on the Enterprise Ethereum Alliance, a serious world blockchain consortium, supplied public minutes on Ethereum block explorer Etherscan to show the transaction. As Santander acted each as issuer and investor inside the transaction, Whelan disclosed minutes on the issuer pockets and investor pockets.
Santander applies blockchain to hurry up and enhance bond issuance
The information comes after Santander issued its first end-to-end blockchain bond, as introduced on Sept. 12. The firm declared that the transfer intends to make issuance bonds quicker, extra environment friendly and easier. Santander in addition declared that the bond will stay of the Ethereum blockchain till the tip of its one-year maturity.
As blockchain know-how continues to realize grip with various industries, Santander is plainly not the only real medium of exchange establishment to experiment with the tech in securities issuance.
As reported in mid-November, world banking big HSBC began exploring using blockchain for issuance of fastened revenue securities in partnership with Singapore Exchange and funding agency Temasek. Specifically, HSBC intends to bolster the bond issuance course of and cut back related prices by making use of tokenized securities and sensible contracts.
Earlier in October, the credit standing arm of medium of exchange providers big Morningstar disclosed it was engaged on a blockchain platform for debt securities issued as tokens on a blockchain.