### Traditional asset classes such as bonds are being explored for tokenization on the Ethereum blockchain as banks and financial institutions can potentially simplify and streamline the bond trading process, making it more efficient and accessible to a wider range of investors. 

According to Blockworks, the European Investment Bank (EIB) is using Ethereum in its effort to tokenize the capital markets. At the same time, the EIB is reportedly releasing the very first digital pound sterling (GBP) bond on a separate private blockchain.

  <blockquote className="twitter-tweet"><p lang="en" dir="ltr">The European Union's investment bank won't deploy the actual bond to Ethereum this time around, instead opting for a private blockchain maintained by HSBC.<br /><br />Ethereum will only keep records of the bonds. But it will keep them nonetheless.<a href="https://t.co/Vyghngux4W">https://t.co/Vyghngux4W</a></p>— Blockworks (@Blockworks_) <a href="https://twitter.com/Blockworks_/status/1621126871978246144?ref_src=twsrc%5Etfw">February 2, 2023</a></blockquote>


Having previously issued a Euro Bond on Ethereum in 2021, the EIB is currently solely using the network for record keeping.



The European Investment Bank (EIB) is the long-term lending institution of the European Union (EU) and was established in 1958, headquartered in Luxembourg. The EIB provides loans and financing to support investment projects that contribute to the EU's objectives, such as promoting economic growth, creating jobs, and improving living standards. The bank supports investment in areas such as infrastructure, small and medium-sized enterprises (SMEs), renewable energy, and research and innovation.



The EIB is owned by the EU's member states and is separate from the European Central Bank (ECB). It is one of the largest international financial institutions and is known for its triple-A credit rating, which allows it to raise funds at low cost and provide financing on favorable terms. The EIB provides loans directly to borrowers or invests in projects through intermediaries such as commercial banks. It operates in more than 140 countries worldwide and plays a key role in the financing of large-scale infrastructure and investment projects in Europe and beyond.



We are undoubtedly moving towards the concept of token economy by experimenting with tokenizing traditional asset classes. The foundation of the token economy is the notion that tokens can stand in for various rights, including ownership, and access. The expansion of the token economy, which presents new options for both businesses and consumers, is a result of the development of blockchain technology and the rising popularity of cryptocurrencies.

Traditional asset classes such as bonds are being explored for tokenization on the Ethereum blockchain as banks and financial institutions can potentially simplify and streamline the bond trading process, making it more efficient and accessible to a wider range of investors. 

Mon Feb 06 2023

European Investment Bank Exploring Tokenized Bonds on the Ethereum Blockchain

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Mon Feb 06 2023 European Investment Bank Exploring Tokenized Bonds on the Ethereum Blockchain

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Mon Feb 06 2023

European Investment Bank Exploring Tokenized Bonds on the Ethereum Blockchain