Bank Santander “real-money pilot” digitizes a $20 million bond trade on Ethereum

  • Santander for the first time digitized the process of issuing bonds on a public blockchain.
  • The main area of focus for Santander remains to be fiat: There no plans to offer custody services for cryptocurrencies.

The Spanish banking behemoth Santander claims that it is the first financial institution to utilize a public blockchain in the entire process involved during the issuance of a bond. According to the communication from the bank on Thursday, an Ethereum token was used in the representation of a $20 million debt processing. What makes this particular process interesting is that another set of ERC-20 tokens were used to settle the same bond. All the tokens represented cash that was currently held in custody.

Similar bonds have been issued by Santander before using the blockchain technology but the processes were conducted on a private Ethereum protocol. According to Santander, it has become the first bank to digitize the entire process. However, Santander issued the bond to itself and no external investor was involved. The head of digital investment banking at Sanender John Whelan told CoinDesk:

“It’s an evolutionary step. There are no secondary markets yet, but we are on that path.”

The head of funding at Santander Antonio Torío refers to project as a “real-money pilot.”

“For Santander, this is really much more of a technology innovation issue than a pure financial issue. We regard this an important first step that will be followed by more complex transactions.”

The bank also clarified that it is not interested in offering custody services for cryptocurrencies like Bitcoin and Ethereum. Whelan added:

“At the bank, we are not interested in cryptocurrencies directly. The technology is the same underneath, but we are interested and our customers are interested in traditional dollars, euros, pounds and that’s our space.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Analysis: BTC/USD could be heading for a deeper correction

Bitcoin's price action has looked dire on Tuesday. The market has moved away from the highs seen on Feb 13th. On the Tue night close, if the market closes below 9,227 then we could be headed toward the 8,500 area marked on the chart.

More Bitcoin News

New EU law encourages mainstream crypto adoption

In July 2018, the Fifth Anti-Money Laundering Directive (AMLD5) was officially signed into law and it came into effect on Jan 10, 2020. The law groups all virtual assets and their providers as “obliged entities.”

More Cryptocurrencies News

Ethereum Price Analysis: ETH/USD posts losses second day in a row, can $250 hold?

Ethereum price alongside other cryptocurrencies is losing ground from the yearly highs posted in February at $288. The losses remain unstoppable following the rejection at $280. 

More Ethereum News

TRON Price Analysis: TRX/USD consolidates below 0.020

TRON seems to be forming a classic downtrend at the moment. On the higher timeframes it could look like a deep retracement. On the 4-Hour chart below, the price has recently printed just below ...

More TRON news


Bitcoin Weekly Forecast: BTC bulls plot the revenge

Bitcoin's market capitalization settled at $176 billion, which is 62.8% of the total digital assets market.

Read the weekly forecast