Spanish bank Banco Santander has issued the first end-to-end blockchain bond.
The bank revealed that it had issued a $20 million bond directly onto the Ethereum (ETH) blockchain, where it will remain until the end of its one-year maturity.
Santander has claimed that its use of blockchain technology for end-to-end bond issuance represents a first step towards a potential secondary market for mainstream security tokens.
According to the press release, Santander issued the $20 million bond which carries a quarterly coupon of 1,98 — while one of the Santander Group’s units purchased the bond at market price.
Santander Securities Services worked as tokenization agents and custodian of the cryptographic keys used for the issuance, with Santander Corporate and Investment Banking (CIB) acting as a dealer.
The transaction was conducted on the public Ethereum blockchain, with Santander securely tokenizing the bond.