It turned out that Santander has issued the bond on September 10, 2019. According to the bank’s head of Digital Investment banking, John Whelan, the recent redemption is a solid proof that it is possible to manage debt security through its full lifecycle on a public Blockchain.
We just performed an early redemption of our blockchain-based bond that we issued on September 10th, 2019. This unequivocally proves that a debt security can be managed through its full lifecycle on a blockchain (public in this case).— John W. 🇮🇪🇺🇸🇪🇸🇪🇺 (@_JohnWhelan) December 10, 2019
Here're the blockchain transactions:
Whelan, who is also the chairman of notable Blockchain consortium Enterprise Ethereum Alliance, has provided public transactions on Etherscan, the block explorer of Ethereum, to verify the transaction. Since Banco Santander is both an investor and issuer in the deal, the details are disclosed on the investors’ wallet and issuer’s wallet.
Investor wallet: https://t.co/69FZYXR2pG— John W. 🇮🇪🇺🇸🇪🇸🇪🇺 (@_JohnWhelan) December 10, 2019
The latest development follows Banco Santander’s issuance of its first-ever end-to-end Blockchain bond, which was announced last September 12. The bank explained that the goal behind the proactive step is to make bond issuance, simpler, faster, and more efficient. In the official announcement, Banco Santander also confirmed that the bond would be kept on the Ethereum Blockchain until it reaches its maturity date.
According to reports, the Spanish bank claims to be the first-ever financial institution to use a public Blockchain for debt issuance. However, some industry accounts are stating that the World Bank has tried the same method using its version of Ethereum Blockchain. Societe Generale, a French lender, has also performed a similar bond issuance using the same network earlier this year.