Blockchain

Ripple Partner Santander Explores Ethereum Blockchain in Full Scale

Spanish bank Santander, which is also a Ripple partner, indicates it is exploring Ethereum blockchain in full scale, after the bank issued tokens for a bond totaling $20 million, a report on CoinDesk has indicated.

The bank had earlier bonded with Ripple, the world’s payment company dedicated in settling cross-border transactions. Santander happens to be one of the top banks in the world that gets itself on the digital track as the global payment system advances.

Blockchain keeps gaining global awareness and popularity on daily basis, world’s top banks strife to incorporate their systems, in order to be in tune, as the world goes digital.

Santander’s Recently Sealed Deal Using Blockchain

As aforementioned, Santander is moving appropriately with the nascent trend in technology. Normally, when bonds are issued by banks on either open or private ledger, it will eventually be settled through fiat payment systems.

So, the recent move by Santander to close the deal on both sides using blockchain has made it to stand out among its equals. Banks in its chain had once done same, but none has so far been settled through blockchain. The fact that this is the first of its kind makes it noteworthy.

Alike bond via Ethereum as of Santander was emitted earlier this year by the Societe Generale based in France and World Bank. However, it was not clearly stated that the bond was  settled through blockchain.

According to the report, none of the process was done outside Ethereum, which makes it looks more assuring that mainstream adoption of Blockchain technology is well around the corner.

The info has it that Santander Security Services custody were in full use for the cryptographic keys, and subsequently used it to issue both tokenized bond and cash, which was used for the settlement. All these were conducted and concluded without third-party investors.

The Clauses of the Sealed Deal

As related by John Whelan, Santander’s head of digital investment banking section, the sealed deal is more of adopting newly invented technology rather than financial issue. He as well pointed that this is a very important first step for the bank, which precedes more complex transactions.

The bond termed as plain-vanilla will last for a year, with 4 quarterly coupons, coupled with a 1.98% rate. According to Whelan, the allocated cash for the settlement had been kept in escrow on Ethereum. This was made possible with smart contract, which will stamp the deal once the transaction is underwritten by the issuer.

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Disclaimer: Our writers invest in cryptocurrencies and it is possible the author of this article has investment in any of the digital currencies discussed. Some times author's presented information may be laced with opinions. Treat articles as mere information and not as financial advice.

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About the author

Solomon Odunayo

Solomon Odunayo had dispensed his writing ability on growing Eagles News Media, covering News for relatively 2 years as a founder and editor.

He now works with NewsLogical.com as a full time cryptocurrency Journalist and Chief Editor due to the experience he garnered over time in the crypto sphere.

Email: solomon.odunayo@newslogical.com, editor@newslogical.com.

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