The European Investment Bank (EIB), the financing arm of the European Union (EU), has announced a two-year digital bond on the Ethereum blockchain. The project is for €100 million and shows increasing institutional adoption of the second largest crypto asset.
Ethereum is the second largest blockchain network after Bitcoin. However, unlike “digital gold,” it is a so-called smart contract platform that allows for decentralized execution of applications.
According to Bloomberg, the European Investment Bank (EIB) now plans to offer €100 million in two-year bonds in an inaugural sale. The EIB’s digital bonds will reportedly be registered on the public Ethereum blockchain.
Institutions use Ethereum
The sale of the Ethereum-based bonds will be overseen by investment banks Goldman Sachs, Banco Santander and Societe Generale. Both Santander and Societe Generale have already issued bonds on the decentralized network.
European Investment Bank is issuing 2 year digital bonds on Ethereum through Goldman, Santander, and Societe.
— Michael Tant (@MichaelTant3) April 27, 2021
Visa has also recognized the potential of the technology. Namely, in the future, the credit card giant will allow payment processing on the Ethereum blockchain. After some established financial institutions have made initial investments in Bitcoin, the second largest decentralized network is now attracting their interest.