The European Investment Bank (EIB) plans to use blockchain technology to sell bonds. EIB prices 100 million euro digital bonds registered on the Ethereum Network. It is the investment and development arm of the European Union.
According to a report by Bloomberg, EIB plans to issue a two-year-100 million euro digital bond. For that, EIB hired Goldman Sachs Group Inc., Banco Santander, and Societe General. Though, Banco Santander and Societe General have issued bonds on the public Ethereum blockchain before.
Ethereum, the world’s second-largest cryptocurrency through market capitalization, touched a new pack on Wednesday. Ether is a digital currency or token facilities transactions on the Ethereum blockchain. In the crypto world, the terms Ether and Ethereum have become interchangeable. Ether hit a record high of $2,760 on Wednesday, following a more than 7% rally the previous day.
Danny Kim, head of revenue at SFOX, full-service crypto broker, said a report on an EIB digital bond issuance has “Triggered a bullish institutional use case for Ethereum.” Additionally, Exchange balances are also decreasing, which has jacked up its value. “The amount of Ethereum sitting on exchange continues to drop lower and has been the lowest in the past year,” Kim mentioned. “With less supply on exchange available, there’s less likely a chance of a major sell-off.”
The demand for Ether has risen as investors use tokens to buy virtual art or land in form of NFTs. This all runs on platforms such as SuperRare and Decentraland. People also use Ethereum Blockchain for getting married. This shows the use of the Ethereum blockchain is increasing which affects the ETH price, making it bullish.
