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Technology blockchain has already permanently entered the financial services market, and its use in this area is not limited to cryptocurrency. Distributed networks, both in the public and private versions, are more and more appreciated. Recently, this solution has been used by, among others Santander Bankby entering bonds based on blockchain technology.
Santander Bank pioneered tokenization
Spanish capital bank Santander Bank, has recently announced a digital bond issue tokens, thus becoming a precursor to the use of blockchain technology in the capital market.
The operation was carried out on a public network Ethereum, and the entire issue process has been submitted tokenizacji.
It was the first such venture on the financial market.
Santander has recorded a total of $ 20m in securities on block chains and has completed full settlements via ERC-20 tokens.
So far, no other bank has issued a bond issue based entirely on the public, dispersed data network, which is Ethereum.
Operation Details
As the first bonds based entirely on blockchain, Santander Bank issued so-called vanilla bonds, which are simple fixed-rate debt securities, which in this case amounted to 1,98%.
The buyout period was set at 12 months.
Investors could purchase blockchain bonds in euros, which were tokenized in the Ethereum network, and then transferred to a smart contract expressing the value of deposits via tokens.
This solution blocks the possibility of carrying out any actions on tokens, until they are bought by the bank, together with interest due.
Yes for blockchain technology - not for cryptocurrencies
Blockchain bonds issued by Santander Bank may have suggested that the bank is planning a return towards digital currencies.
However, the facility strongly denies that it has such plans. As the bank's representatives emphasize, he is interested in using the potential of blochchain technology, but only in the context of operations on securities, taking into account primarily their transparency and speed of implementation.
