European Debt Pioneer Trumpets Revolution Coming From Blockchain
For the European Union’s investment arm, blockchain could prove a game-changer, bringing about a transformation of debt market processes with echoes of the revolution ushered in by the World Wide Web.
“The technology is revolutionary,” said Richard Teichmeister, head of funding at the European Investment Bank. “This is a bit like the development of the internet and someone just sent the first email.”
The EIB harnessed the power of blockchain earlier this week when it raised 100 million euros ($121 million) in a two-year deal that was the world’s first syndicated offering of “digital” bonds. According to Teichmeister, the digital-ledger technology brings benefits in terms of savings of time and money that market participants can no longer ignore.
Issuers including the World Bank, China Construction Bank Corp., JPMorgan Chase & Co. and National Bank of Canada have deployed blockchain in the debt capital markets in recent years, but, until now, its use has been comparatively limited.