According to Bloomberg, the EIB (European Investment Bank) will employ blockchain technology to issue two-year digital bonds. European Investment Bank is introducing a digital bond sale employing the Ethereum Network. In a note published Tuesday, the publication briefed the European Investment Bank’s intends to use Ethereum to register €100 million worth of digital notes. Banco Santander, Goldman Sachs, and Société Générale will lead the sale, the report elucidates.
Moreover, on April 23, Société Générale disclosed that its subsidiary Societe Generale SFH had assigned a 100 million Euro bond as a security token on the public Ethereum blockchain. Additionally, it was awarded the top triple-A rating by Moody’s and Fitch. Ethereum prices surged to a new ATH (all-time high) on Wednesday following the declaration from the European Investment bank. Ethereum has climbed to $2,709 during the early Asian trading on Wednesday, April 28, marking a new peak price for the asset, according to Coingecko.
European Investment Bank to Strengthen Ethereum’s Value Proposition
Furthermore, the EIB utilizing Ethereum to register digital bonds would help bolster Ethereum’s value proposition as a global settlement layer. The project’s significant evangelists have long explained Ethereum’s potential to perform as the base layer for transactions of several forms. Ethereum processes its transactions utilizing smart contracts. Further, it’s the most important and most used smart contract platform today, recording approximately 1.5 million transactions daily.
In current years, the DeFi and NFT booms have characterized the network’s activity. However, Ethereum still has to gain wider acceptance amongst institutions like banks. If the European Investment Bank and other financial giants are to commence issuing payments on Ethereum, mass adoption may be on the border. Though Ethereum is not as internationally known as its predecessor, Bitcoin, it has lately had its good share of mainstream attention. CME Group, the world’s most comprehensive derivatives exchange, introduced ETH futures in February. Moreover, PayPal supports ethereum like bitcoin. This year, the NFT boom has also urged digital creators and prominent pop artists such as Eminem and Kings of Leon to begin using the network.
Follow BitcoinWorld for the latest updates.
