Santander Head of Digital Investment Banking John Whelan took to Twitter to share the news. His tweet said:
“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).”
On September 10, Santander used an Ethereum-based token as a representation of a $20 million issuance which was also settled with tokens used to represent cash in custody. This is not the first time blockchain technology has been used in the issuance of bonds as in the past, the World Bank as well as French financial services company Societe Generale Group, have also made similar moves. What sets Santander’s process apart is that the entire thing was done using blockchain technology from issuance all the way to redemption.
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