Santander Exec Praises Blockchain Tech After $20M Ethereum-Issued Bond Redemption

  • Santander is the only bank to completely automate a bond on a public blockchain.
  • Ethereum has dropped by 1.84% in the last 24 hours.

Santander, the Spanish banking group, recently became the subject of a Whale Alert tweet as they redeemed their first blockchain bond on the Ethereum ledger, worth $99,000. With this announcement, there are many cryptocurrency proponents that seem optimistic about the direction of Ethereumโ€™s price, pushing for a bullish reversal.

While that reversal has yet to be seen, as ETH remains priced at $145 after a 1.8% drop, this payout has led John Whelan, the head of Digital Investment Banking for Santander, to praise blockchain technology. Admiring it as a solution for issuing securities. Whelan posted about the recent transaction on Twitter.

To prove the transaction, in which Santander acted as both the investor and issuer, Whelan showed the public blockchain transactions, which were documented on Etherscan. The transactions can be seen at (issuer) and (investor).

Santander became the first financial institution to utilize blockchain technology for the issuance of a bond three months ago. To represent the $20 million bond, the bank chose a custom Ethereum token, though they settled it with a different token to show that a custody account held the cash. While blockchain-based bonds have already been issued by other major players in the traditional finance industry, Santander remained the only one to actually complete the entire process with the use of a blockchain ledger.

In September, when the bond was initiated, Whelan had said,

โ€œItโ€™s an evolutionary step. There are no secondary markets yet, but we are on that path.โ€

Perhaps the path will move along more quickly, since the banking group has now seen exactly how these transactions play out on the blockchain.

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Author: Krystle M

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