Santander bank redeemed issued $20 million Ethereum-bond

by in Blockchain News

Santander Ethereum bond

Santander, which is the largest bank in Spain, redeemed a $20 million bond, issued on the Ethereum blockchain this September.

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The head of digital investment banking at Santander and chairman of Enterprise Ethereum Alliance, John Whelan, also wrote about this in his Twitter account.

He also provided transaction data:

The bond was issued with a quarterly coupon of 1.98% and acquired at a market price by one of the divisions of the financial and credit group of the bank. In September, representatives of the bank said that the release process took 5 days, and the number of intermediaries was reduced with the use of blockchain.

Santander claims to be the first financial institution tokenizing the entire process of issuing and settling bonds. The blockchain startup Nivaura, which issued the first Ethereum-based bonds in 2017, helped to complete the task.

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Meanwhile, you can see that the company is interested in the technology of blockchain, but not in crypto.

For example, in August, the bank began work on the creation of a “payment corridor”, through which customers from Latin America will be able to make money transfers to the USA. To solve the problem, the company chose Ripple technology, while they did not use XRP.