Goldman Sachs has launched its digital asset tokenization platform, GS DAP, with the issuance of a €100 million ($104m) digital bond for the European Investment Bank (EIB) on the private GS blockchain. This is EIB’s second digital bond, and as with the previous bond, Goldman, Santander, Société Générale and the Banque de France were involved.
The 2-year syndicated bond issuance was settled instantly in a delivery versus payment transaction that used experimental central bank digital currency (CBDC) tokens issued by the Banque de France. The bond and the CBDC tokens live on different blockchains.
Given that the bond is issued under Luxembourg law, the Banque centrale du Luxembourg was also involved with the bond settlement, and the security is listed on the Luxembourg Stock Exchange. Luxembourg is one of the friendliest jurisdictions for EU digital securities, although France and Germany are also attractive. Next year the EU DLT Pilot Regime commences enabling some level of digital securities testing across the European Union.
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