The European Investment Institution (EIB) has made a mark by putting its first £50 million digital loan up for sale. Based on the blockchain, this initiative is part of a policy in favor of the tokenization of traditional assets. From now on, the issue, transfer and custody of dematerialized securities can be done on distributed infrastructures. A small revolution for the world of finance.
A first in Europe
The January 31, 2023 mark may be a turning point for traditional finance. The European Investment Bank (EIB) has in fact announced the setting up of the first “ digital loan », in pounds sterling. In a short communicated, the investment bank details the project. He combines private and public blockchain through a tailor-made tokenization platform, baptized HSBC Orion. Thanks to her, the EIB wishes improve the financial services which it still considers too rigid.
The private (encrypted) blockchain records the legal ownership of digital bonds. It also provides an operational framework for managing and recording the cycles of these markets. While the public blockchain is used for informational purposes. It allows investors and markets to observe the anonymous holders of digital bonds. A kind of fusion between traditional finance and the transparency of the shared ledger that the blockchain presents.
“Now is the time for more innovation in the financial sector. We are delighted to issue the first digital bond in sterling on a private and public blockchain with the support of our peers. »
The tokenization of assets by the blockchain
Several major banks are partners in the project. Indeed, BNP Paribas, RBC and HSBC will hold these bonds in digital securities accounts. According to the EIB, this digital bond architecture offers promising benefits to market participants. On the agenda: reduced costs, improved efficiency and real-time data synchronization between partners.
Enthusiastic, Hervé Cros, leader of BNP Paribas, declares on this subject:
“BNP Paribas is pleased to invest in the EIB’s first digital bond issue denominated in sterling. This provides insight into how blockchain-based settlement platforms can be used in liquidity management. »
This enthusiasm for the tokenization of assets is in line with the opinion of financial counterparts across the Atlantic. Like the CEO of BlackRock, who believes that the tokenization of assets represents the future of the markets.
This pioneering vision of digital bonds has the potential to revolutionize capital markets. It offers a new way of securing and exchanging financial securities. Blockchain technology and its unique architecture could also allow the general public to access a new class of assets. Soon, you will no longer need a suit and tie to invest?
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