Banco Santander Redeems $20 Million Bond Using Ethereum Blockchain

Banco Santander, a multinational banking giant of Spain, has just redeemed a $20 million bond by using the Ethereum blockchain.


Santander redeems a $20 million bond issued via the Ethereum blockchain in September https://t.co/Xo6EwGl6P5 $BTC $ETH $XRP $BNB — CryptoGryphon (@cryptogryphon) December 10, 2019

The firm has performed an early repayment of the blockchain-based bond that was issued on September 10, 2019, which reportedly shows that the public Ethereum blockchain can be applied to securities issuance across the full lifecycle of security.

On December 10, John Whelan, the Head of Digital Investment Banking at Santander, tweeted:

“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).”

However, Whelan, who also chairs the board at the Enterprise Ethereum Alliance, a major global blockchain consortium, provided public transactions on Etherscan, the Ethereum block explorer, to prove the transaction.

As Santander acted both as issuer and investor in the transaction, Whelan disclosed transactions on the issuer wallet and investor wallet.


Issuer wallet: https://t.co/CZE5ifUPQ7 — John W. 🇮🇪🇺🇸🇪🇸🇪🇺 (@_JohnWhelan) December 10, 2019

Investor wallet: https://t.co/69FZYXR2pG — John W. 🇮🇪🇺🇸🇪🇸🇪🇺 (@_JohnWhelan) December 10, 2019

Similarly, the news comes after Santander issued its first end-to-end blockchain bond, as announced on September 12. The company said that the move intends to make issuing bonds faster, more efficient and simpler. Santander also said that the bond will remain of the Ethereum blockchain until the end of its one-year maturity.

Thus, it has been analyzed that as blockchain technology continues to gain traction with a number of industries, Santander is evidently not the sole financial institution to experiment with the tech in securities issuance.

Source: cointelegraph.com

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