EIB launches second euro digital bond with Goldman, SocGen

Flags are seen behind the logo of the EIB pictured in the city of Luxembourg
Flags are seen behind the logo of the European Investment Bank pictured in the city of Luxembourg, Luxembourg, March 25, 2017. Reuters/Eric Vidal/File Photo

NEW YORK, Nov 29 (Reuters) - The European Investment Bank (EIB) said on Tuesday it had launched its second euro-denominated digital bond on a private blockchain, in partnership with Goldman Sachs Bank Europe, Santander and Societe Generale.

The 100 million euro, two-year bond was issued, recorded and settled using private blockchain-based technology, and represents the inaugural issuance on Goldman Sachs' tokenisation platform, the statement said.

A blockchain is a database that is shared across a network of computers and powers cryptocurrencies.

EIB's issue of a series of bonds on a blockchain allowed investors to purchase and pay for the security tokens using traditional currency.

The joint lead managers — Goldman Sachs Bank Europe SE, Santander and Societe Generale — then settled the underwriting against the issuer using the central bank digital currency.

"Blockchain has the potential to disrupt a wide range of sectors," said EIB Vice-President Ricardo Mourinho Felix in a statement.

The transaction also marks the launch of Goldman Sachs’ proprietary Tokenisation Platform, said Mathew McDermott, global head of digital assets at Goldman Sachs.

Reporting by Saeed Azhar and Mehnaz Yasmin in Bengaluru; Editing by Anil D'Silva and Chizu Nomiyama

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