The European Investment Bank (EIB) has issued a blockchain-based digital bond denominated in Swedish krona. The bond, called the Climate Awareness Bond, will operate on the So|bond sustainable blockchain platform, which incentivizes node operators to reduce the environmental impact of their infrastructure. The platform’s Proof of Climate awaReness algorithm rewards nodes with lower impact ratings with higher remuneration. The EIB’s Vice President, Ricardo Mourinho Felix, stated that the bond aims to leverage blockchain technology to move towards more sustainable financial systems. The bond is also registered on the Luxembourg Stock Exchange Securities Official List and displayed on the Luxembourg Green Exchange.
The EIB has been exploring blockchain-based platforms for digital bonds over the past three years. In April 2021, news of a potential Ethereum-based digital bond issued by EIB sent ETH to all-time highs. Additionally, the EIB settled a €100 million ($103.7 million) euro-denominated digital bond on a private blockchain platform in collaboration with Goldman Sachs and Société Générale Luxembourg.
Title: European Investment Bank Issues Green Bond on Sustainable Blockchain
Categories: Blockchain, Sustainable Finance, Green Bonds