Blockchain technology still has the potential to disrupt traditional finance. Santander is moving ahead with its DLT venture after successfully redeeming a digital bond.
Santander has been active in the blockchain industry for several years now.
Albeit most of its projects are kept under wraps, this particular development isn’t kept under wraps.
The bank has confirmed it experimented with redeeming a digital bond.
That bond was issued on the public Ethereum blockchain, and is valued at roughly $20m.
Now that the technology to redeem this bond has been deemed viable, it will be interesting to see what Santander plans to do next.
The bond was initially issued three months ago as an Ethereum token.
During the redemption process, a different token – representing cash held in a custody account – was used
Its redemption could have been problematic, yet it appears debt securities can be adequately managed through a public blockchain.
It is worth noting this transaction did not involve any other banks or third-party service providers.
Santander is the issuer and redeemer of this pilot bond.
To date, Santander is still the biggest bank to publicly issue such a high-value bond on a public chain.
Whether other banks will experiment with public ledgers in the future, has not been confirmed at this time.
Following such a successful trial, the excitement regarding blockchain will undoubtedly increase.
Bitwise Asset Management has just made its first move into tokenized funds, and it comes…
Binance just made a move that blurs the line between crypto exchange and traditional brokerage…
NEAR Protocol has had a month that most blockchain projects would stretch across an entire…
Something is becoming increasingly clear about Chainlink, the integrations are not slowing down. The protocol…
Blockchain investigator ZachXBT has flagged a major stablecoin freeze that is sending shockwaves through the…
From a primarily interest rate swap niche product, Exponent has developed into an onchain capital…