Santander issues the first bond on blockchain

Santander issues the first bond on blockchain - Santander

Santader is an international banking group that has several offices in Europe. The group during its last communications stated that it chose to launch a bond on the Ethereum blockchain. 

This is a bond worth 20 billion dollars, and currently appears to be the first bond issued on the blockchain. The bond on end-to-end blockchain certainly represents a step for the potential secondary market for future security tokens. 

The issuer of this obligation is always the same Banco Santander while as a buyer there is one of the companies controlled by the group, according to the bank's statement, the bond has a quarterly coupon equal to 1,98%. 

The tokenization and custody of the Santander bond 

The Santader bond issued by the institution has seen the development of tokenization and consequently the custody of cryptographic keys from another subsidiary of the group namely Santander Securities Services. The official retailer was Santander Corporate and Investment Banking. 

Il project started by Santander he needed external support that was requested by StartUp Nivaura, from London, a regular fintech company, which develops innovative solutions to automate and digitize various key processes in capital markets. A venture capital fund where the Santander company InnoVentures has decided to invest 200 million dollars in February. Finally, in order to be able to do everything in the most legal way possible, she also relied on the lawyers' office that she works in Allen & Overy globally. 

Santander's goal with the obligation 

But what is Santander's goal? The objective of this choice is to allow the issue of bonds in a simpler, more efficient and faster way. The blockchain chosen to understand the validity of this solution was the public one of Ethereum, which is currently one of the most advanced open source blockchains of the future. 

Start a bond on blockchain should also allow payment of the purchase and quarterly coupons that have been tokenized and represented in digital mode on the blockchain. In this way, deadlines may require a reduced number of intermediaries and can be managed faster, easier and more efficiently. At least it is this is what Santander CIB stands for with the issue of the bond on a blockchain.

Furthermore, as also confirmed by the financial director Jose Garcia Cantera stated that: Santander is always at the forefront of trying to transform the financial sector and make it penetrate more and more into the digital and modern world. For this reason we have carried out this transaction, for example, of our desire to exploit new technologies to make our customers happy but also more efficient in their operations.