Will Banks Become More Crypto-Friendly?
Founded in 1857, Santander is one of the older banks in Europe and the continent's 5th largest. While they are primarily located in Europe, Santander has been expanding to new markets such as Asia & the Americas. As an expanding bank, they need to innovate to stay relevant amongst the competition. This might be the reason that they have been experimenting with Ethereum's blockchain.
Santander's Blockchain-based Bonds
Earlier this year the bank issued a token to represent $20 million debt issuance. It later settled it with a different set of ERC-20 tokens.
Santander Bank chose the Ethereum blockchain for the issuance of these tokens over rival projects such as EOS or TRON. This could be due to legal reasons or possibly because the Ethereum blockchain is more tried and tested than their competition.
Santander have first revealed their Ethereum based bonds earlier in September, and it appears that it was a successful experiment. These bonds have been growing in monetary interest. It has been reported that they have gained $99,000 in quarterly interest.
ð§¾ A #santander bond that was settled on #ethereum has accrued the first 99,000 USD quarterly interest. The series of transactions that are part of this are:https://t.co/sWIfjFirnehttps://t.co/wBYHhPL0hjhttps://t.co/hUu7bHNIKyâ Whale Alert (@whale_alert) December 10, 2019
Seeing that Santander bank was rather successful with it's attempt with tokenized bonds, other banks may follow. This could be an indicator that the financial industry is warming up to blockchain tech. Mass adoption could still take years, however.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado