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Ethereum Blockchain Used by Santander to Close $20-Mln Deal with Bonds

  • Yuri Molchan
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    Spanish-based banking heavyweight Santander uses Ethereum blockchain and ERC-20 tokens for settling a tokenized debt for $20 mln

Ethereum Blockchain Used by Santander to Close $20-Mln Deal with Bonds
Contents

As reported by CoinDesk, the Spanish major bank Santander has revealed that it has explored the opportunities offered by Ethereum blockchain on a full scale – the bank has issued tokens for a $20-mln bond and used other ERC-20 tokens that represented cash stored in a custody account to settle it. No outside investors were involved.

 A deal closed via blockchain on both sides for the first time

These days, blockchain is becoming so popular that even major banks are starting to use it for putting their deals on the digital track. However, if banks issue bonds on an open or even private ledger, they then settle them with via the traditional system of payments.

Santander has outperformed them all this time by closing the deal via blockchain on both sides.

Earlier this year, the World Bank and the French-based Societe Generale emitted a bond via Ethereum too but nothing was said about settling it via a blockchain.

Santander reps claim that every single process in that deal was done via Ethereum. They even used the Santander Security Services custody for the cryptographic keys which were used for issuing the tokenized bond and the tokenized cash used for settling it.

The bank issued a bond to itself without getting any outside investors involved.

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Details of the deal

The head of digital investment banking section at Santander, John Whelan, stated:

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 bond they used was a plain-vanilla one. It had a maturity for one year, four quarterly coupons and a 1.98-percent rate.

The tokenized cash and bonds were exchanged “simultaneously and irrevocably.” The cash had been kept in escrow on Ethereum using a smart contract which allowed the deal to happen once the issuer underwrote the transaction.

When asked whether the bank could technically perform the same using Bitcoin or Ether, Whelan said that it is possible but the bank does not plan to do that so far.

Cover image via 123rf.com
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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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Ripple-Backed Coil Startup and Mozilla Launch $100 Mln Fund to Let Content Makers Earn

  • Yuri Molchan
    📰 News

    Coil startup founded by a former Ripple CTO joins forces with Mozilla, Creative Commons to set up a $100-mln fund that would allow content makers to monetize their content and users to directly encourage web authors they like

Ripple-Backed Coil Startup and Mozilla Launch $100 Mln Fund to Let Content Makers Earn
Contents

As reported by Prenewswire and Coil itself on its official Twitter page, the Ripple-supported startup founded by a former Ripple CTO Stefan Thomas has partnered with such major companies as Mozilla and Creative Commons.

Together they are launching a fund that would provide a $100-mln grant to let content makers earn money on what they produce for various platforms on the Web. Users will also be able to support content valuable for them with cash - something which has not been technically possible to be done directly on platforms since the appearance of the Internet.

Heading for the decentralized Internet

The new fund will be dubbed Grant for the Web. It is going to tackle some crucial issues regarding user privacy and their personal data, fake news spreading, etc. The fund will be working as part of the broader Web Monetization initiative.

The grant of $100 mln will enable developers and content makers to introduce new standards and alternative business models that would let benefit both makers and consumers of online content. The fund will encourage independent creators and help increase inclusion.

The money for the grant will be totally provided by Coil with contributors from Creative Commons and Mozilla helping to implement the initiative. The startup also welcomes those who want to join in and assist in this project.

As per reps of the fund, Coil has developed an add-on for Mozilla Firefox and a desktop extension for Google Chrome (since Firefox uses the Google search engine by default). They also mentioned that in the future collaborations will be struck with other web browsers to get them to participate in the Web Monetization.

As reported by U.Today earlier, recently Ripple took part in an investment round of Coil and also supported the startup with a 1-mln XRP grant.

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The community’s reaction to the news

Some in the community are curious how long it will take to see the first results, like will it be five years or faster, longer.

Grant for the Web replied that the fund is going to run for more than five years. Numerous grants, rewards and initiatives are planned over that period with results to be shared with the community.

Cover image via www.123rf.com
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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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