The European Investment Bank (EIB) has been at the forefront of innovation as an issuer of some of the first tokenized bonds. So far, it has issued three digital bonds on different platforms, with another two planned this year. Xavier Leroy, the funding officer in charge of the blockchain issuances at the EIB, identified a key issue as a lack of mainstream custodians that support digital assets.
Investors want to use their conventional custodian relationships, so they won’t invest if the custodian can’t handle the digital asset.
An example is Germany’s DZ Bank, where its custody work has been primarily driven by its client Union Investment, one the largest German asset managers that invested in the two EIB Euro digital bond issuances, buying the entire amount of the first €100m issuance.
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