Verified use case
What happened?
The European Investment Bank issued a EUR 100 million digital bond in April 2021 on Ethereum. The bond record and the cash used for settlement were separate parts of the transaction.
Context before technology
Background
A bond gives its holders a claim on the issuer. Recording it on Ethereum does not turn the debt into ether or make it available to anyone with a wallet.
The EIB worked with Goldman Sachs, Santander and Societe Generale on the issuance. The Banque de France was involved in the experimental digital cash settlement. Keeping those roles separate helps explain what the transaction actually tested.
Roles and records
How does the operating model work?
Issue the security
The EIB issued a euro-denominated bond using Ethereum for the digital securities record. The banks arranged the transaction.
Settle the proceeds
The EIB describes settlement of the issue proceeds from the joint lead managers using a representation of central bank money. That describes a specific cash leg, not a claim that all secondary trades settled this way.
Plan for the life of the bond
An issuer evaluating a similar arrangement should document how servicing and redemption work, including who can intervene if the cash and securities records do not match.
Core infrastructure
- Digital bond issuance
- Public Ethereum
- Bank-led distribution
- Experimental central bank money for settlement
Confirmed milestones
How did the use case develop?
- 01
April 2021
First EIB digital bond on a public blockchain
The EIB launched the EUR 100 million issuance with a two-year term.
- 02
2022
Second euro digital bond used private infrastructure
The EIB's 2024 financial report identifies the second euro digital issuance as its first using private blockchain technology.
Evidence of adoption
What outcomes are publicly confirmed?
Principal amount of the first issuance
This is the amount of the April 2021 bond, not a measure of outstanding digital debt today.
Metrics are attributed to their reporting organization and date. They are not forecasts, endorsements or guarantees of equivalent results.
Current position
What are the latest confirmed updates?
- The EIB's 2024 financial report records a sequence of digital issuance projects beyond the initial public-chain transaction. It does not establish that one ledger model replaced the other.
What buyers can learn
Why did this use case progress?
- Specify the securities and cash legs separately before comparing infrastructure.
- Have the issuer and servicing parties walk through the same failure scenario, including what evidence confirms that both legs have settled.
Limits of the evidence
- A completed issuance does not demonstrate cheaper execution, deeper secondary liquidity or suitability for another issuer.
- The experimental central bank money used in this transaction is not proof of general access to that settlement arrangement.
Questions to take into procurement
- Which record is authoritative if the chain and the servicing system disagree?
- What cash instrument settles the issuance and who can hold it?
- Who handles failed settlement, investor records and redemption?
Relevant FluidRWA directories
Common questions
Was the bond denominated in ether?
No. It was denominated in euros. Ethereum was used for the digital bond record.
Did the EIB use the same infrastructure for its next euro digital bond?
No. The EIB's financial report describes its second euro digital bond in 2022 as its first on private blockchain infrastructure.
Research record
FluidRWA reviewed the following public records. Company names are presented as plain text and are not outbound promotional links.
- European Investment Bank, first digital bond announcement, April 2021: https://www.eib.org/en/press/all/2021-141-european-investment-bank-eib-issues-its-first-ever-digital-bond-on-a-public-blockchain
- European Investment Bank, Financial Report 2024, discussion of digital bond activity: https://www.eib.org/attachments/lucalli/20240237_070525_financial_report_2024_en.pdf
Independent research summary, not legal, investment or regulatory advice. Public statements may be updated after the research cut-off.
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