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Banco Santander Transforming Madrid with DLT | BTCMANAGER
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Spanish bank Banco Santander has launched a $20 million bond on the blockchain. The financial institution has also partnered with the Madrid City Council to develop a blockchain-powered application that will enable citizens to pay transport fare from a unified platform, according to an EnterpriseTimes report on October 18, 2019.
Bond on the Blockchain
Per the report, Banco Santander has forged ahead with a distributed ledger technology (DLT) initiative it began in 2016, to launch a $20 million bond on the on a distributed ledger.
According to the bank, the bond will only exist on the blockchain, and it marks the first step of possibly launching a secondary market for tokenized securities in the near future. Reportedly, Banco Santander is the issuer of the bond, and Santander Corporate and Investment Banking (SCIB), its global division, is working alongside the team.
Notably, the bond which will expire in a year is powered by the ethereum smart contracts blockchain.
Blockchain Bond Attracts Investors
Further reports reveal that a unit of Santander Group has already purchased the bond at market price, and the bond has a quarterly coupon of 1.98 percent. Also, the cash used to complete the investment and the coupon has been tokenized on the blockchain.
Commenting on the blockchain initiative, José García Cantera, Banco Santander’s CFO, said its $20 million bond is evidence that Santandar is at the forefront of the digital transformation of the financial sector.
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