Banco Santander, a multinational company based in Spain that operates in the financial services sector, announced that it had carried out the first issue of a bond loan based on Blockchain. The size of the transaction would amount to 20 million dollars and would have no precedent not only in Europe.
For the moment it would have been an experiment, the loan was in fact purchased at market price by a subsidiary of the same group, but we are talking about the concrete attempt to feed a secondary market whose security is guaranteed by the same DLT (Distributed Ledger Technology) that allow the formulation of smart contracts.
The intention is to demonstrate that even the largest issues of bonds can be managed without the need to resort to intermediaries (or severely limiting the number and participation), all of which privilege efficiency aspects as much as possible. certification and transaction speed.
In detail, the obligation provided provides for a coupon that is destined to accrue a quarterly interest of 1.98%, the payment of the coupons will be recorded through Blockchain becoming traceable while the cryptographic keys will be kept by Santander Securities Services, subsidiary specialized in post-trading solutions.
The loan has a maturity of one year, but according to the financial director of the Banco Santander José García Cantera, in the future the operations based on distributed technologies could be ever more numerous. If the initiative were to achieve the expected results, it is likely that other financial institutions will decide to bet more on the Blockchain.