Today, the European Investment Bank (EIB) revealed a revolutionary milestone: its first digital sterling bond powered by a private blockchain platform. This momentous accomplishment was made possible through EIB’s collaboration with BNP Paribas, HSBC, and RBC Capital Markets.
Digital Sterling Innovation Will Bring Many Benefits to Investors
The European Investment Bank announced that its digital sterling bond is worth a staggering £50 million and will run on a private Blockchain network. The EIB’s revolutionary tokenized bond, traded by the HSBC Orion platform, will operate in an entirely transparent system where each transaction shall take place on both public and private blockchains. Moreover, the legal ownership of this digital sterling bond would be held securely in the distributed ledger technology-based network.
The European Investment Bank declared that to make sales more cost-effective and provide investors with real-time transactions, and they would be issuing digital bonds using HSBC Orion and BNP Paribas Securities Services in Luxembourg as their recorders. RBC and HSBC will also act as custodians for existing clients investing in digital bonds. This groundbreaking technology was introduced to offer improved efficiency while giving investors a greater advantage.
European Investment Bank to Monitor Innovation Attitudes in the Financial Sector
Declaring that it’s the perfect moment for more innovation within the financial sector, European Investment Bank Vice President Ricardo Mourinho Felix stated that their new economic offerings would enable them to raise extra capital to invest in worldwide projects. With this newfound funding, they can spur advancement and make a global difference.
In recent years, tokenization of investment products has become a necessity, and HSBC’s Orion platform is at the forefront with its integration of blockchain technology. This new approach offers considerable savings in cost, improved efficiency, and greater transparency when it comes to exporting investment goods.
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