European Investment Bank issues €105M digital bond on HSBC Orion
Author: Content Editor
The European Investment Bank (EIB) has issued its fifth digital bond, worth €100 million, as part of ongoing central bank digital currency (CBDC) trials in the European Union. The bond, which settles in a wholesale CBDC, was issued on the HSBC Orion platform. The EIB has previously explored different features with each bond issuance, including using public and private blockchain networks and tokenization platforms. The latest bond settlement is conducted using wCBDC tokens issued by the Banque de France, with the aim of testing the interoperability of wholesale CBDCs within existing financial networks. The EIB's use of the D3LS platform follows a similar digital bond settlement by French state-owned bank Caisse des Dépôts. The wCBDC tokens offer advantages such as atomic settlements, which eliminate counterparty risk. The issuance of the digital bond also involved BNP Paribas, NatWest, and the French subsidiary of HSBC as joint lead managers. Meanwhile, Japanese bank SBI and Swiss bank UBS have completed a tokenized fund pilot project to demonstrate the automation of asset management via smart contracts. This was part of the Monetary Authority of Singapore's Project Guardian, which aims to digitize the fund administration industry. The project showcased how blockchain, tokenization, and smart contracts can improve efficiencies, reduce errors, and enhance transparency. The solution is currently active on testnets and is expected to transition to mainnets in the near future.