Macro guru Raoul Pal says a new milestone for Ethereum demonstrates the platform’s ability to command the crypto and financial sectors.
The Real Vision founder highlights news that the European Investment Bank (EIB) is launching €100 million in digital bonds on the Ethereum blockchain.
The EIB, the lending arm of the European Union, is tapping Ethereum’s distributed ledger technology for the registration and settlement of the digital bonds, according to a press release from the bank, which is collaborating with Goldman Sachs, Santander and Societe Generale.
Pal says the development shows the flexibility and dominance of the Ethereum network.
“It is a test that tacitly accepts that crypto offers better settlement, custody and transfer for the global bond market. Something I have talked about for a decade… in the end, all securities of all types will migrate across to public blockchains.
Also, it just show how massively dominant ETH currently is for use cases.”
The EIB will issue a series of bond tokens on the Ethereum blockchain, and investors will pay for the tokens using fiat currency. The bond issue will still be governed by French law.
The European bank says the digitalization of capital markets will reduce intermediaries and fixed costs while improving market transparency and settlement speed.
Explains Bertrand de Mazières, the director general for finance at the EIB,
“By helping to create a framework for a new market ecosystem, the EIB believes this will bring value added for both issuers and investors, while contributing to an innovative, efficient and secure market infrastructure.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/IM_VISUALS