Spain-based Banco Santander has announced the issuance of a $20 million end-to-end blockchain bond. The bond has been issued through the public Ethereum blockchain and allows the bank to tokenize the bond securely and registering it in a permissioned manned on the blockchain. The bank has stated that the cash and the quarterly coupons used for the completion of the investment has been tokenized.

José García Cantera, CFO at Banco Santander, said, “Santander is at the forefront of the profound digital transformation of the financial sector and this transaction is one example. We want to take advantage of any technology that can accelerate that process so that our customers thrive and be faster and more efficient, and blockchain is one of those technologies.”

For the following project, Banco Santander acted as the issuer with Santander Securities Services in the role of the tokenization agent and custodian of the cryptographic keys and Santander Corporate and Investment Banking acting as the dealer for the issuance.

José María Linares, global head of Santander Corporate & Investment Banking, said: “Our clients are increasingly demanding the best thinking and technology in how we serve them in their capital-raising efforts. This blockchain-issued bond puts Santander at the forefront of capital markets innovation and demonstrates to clients that we are the best partner to support them on their digital journey.”

According to Santander, it has selected a London-based startup Nivaura for the digitization and the automation of the key processes as well as for the launch of the blockchain bond project.

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by Megha Bhattacharya
Market Analyst at IBS Intelligence
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