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Yet more signs of mainstream adoption for crypto. This time, Ethereum is reportedly taking the spotlight courtesy of the European Investment Bank.
EIB Reportedly Leveraging Blockchain
The European Investment Bank will use blockchain technology to issue two-year digital bonds, Bloomberg has reported.
In a note published Tuesday, the publication detailed European Investment Bank’s plans to use Ethereum to register €100 million (~$120M) worth of digital notes. Goldman Sachs, Banco Santander, and Société Générale will handle the sale, the report notes.
It also cites an unnamed source, who allegedly disclosed details to the publication without permission. According to the report, the source said that the notes may be priced on Tuesday.
European Investment Bank is issuing 2 year digital bonds on Ethereum through Goldman, Santander, and Societe.
Wow. @GoldmanSachs #Ethereum @RaoulGMI pic.twitter.com/kaQIrZ9C9V
— Michael Tant (@MichaelTant3) April 27, 2021
The European Investment Bank using Ethereum to register digital bonds would help reinforce Ethereum’s value proposition as a “global settlement layer.” The project’s biggest evangelists have long discussed Ethereum’s potential to act as the base layer for transactions of various forms. Ethereum processes its transactions using smart contracts; it’s the biggest and most used smart contract platform today, recording about 1.5 million transactions daily.
In recent years, the network’s activity has been characterized by the DeFi and NFT booms, but Ethereum still has to earn wider recognition among institutions like banks. If the European Investment Bank and other financial giants are to start issuing payments on Ethereum, mass adoption may be on the horizon.
Though Ethereum is not as widely known as its predecessor, Bitcoin, it has had its fair share of mainstream attention recently. CME Group, the world’s largest derivatives exchange, launched ETH futures in February. Like BTC, ETH is now supported by PayPal. This year’s NFT explosion has also inspired digital creators and major pop artists like Eminem and Kings of Leon to start using the network.
ETH jumped this afternoon, possibly in response to the Bloomberg report. It’s trading at $2,668 at publication, a new record high.
European Investment Bank is yet to comment on the report.
Editor’s note: This story is developing and will be updated as details surface.
Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies.