EIB issues digital native bond

digita, eib, bondThe European Investment Bank (EIB) has completed the issuance of a digital bond in an initiative that also involved the central banks of France and Luxembourg and the use of an experimental central bank digital currency (CBDC).

The so-called Project Venus involved the issuance, record and settlement of a €100 million, two-year bond using private blockchain-based technology.

The EIB appointed Goldman Sachs, Santander and Societe Generale to issue and distribute the digital native bonds.

According to the EIB, the transaction has a number of firsts: the first interest rate swap hedge represented through the industry developed common domain model (CDM); the first syndicated deal settled T+0 and the first cross-chain delivery vs payment settlement using an experimental CBDC token; and the very first digital bond executed under Luxembourg law.

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