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Financial innovation of the year 2021: EIB shows how security tokens may transform financial markets

Euromoney’s inaugural award for innovation goes to a groundbreaking issue of digital native tokens on a public blockchain in a syndicated bond deal that drew interest from 100 investors. While institutional money flows into crypto and DeFi, leading banks and issuers are now also keen to transform traditional markets with digital assets and digital cash.

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Richard Teichmeister, EIB

Euromoney’s first award for innovation, a new category in our awards for excellence, goes to the EIB’s €100 million two-year bond, joint lead managed by Goldman Sachs, Santander and Societe Generale.

The deal priced on April 27, 2021. It was issued registered and settled on Ethereum and is the debt capital market’s first multi-dealer-led, primary issuance of digitally native tokens on an open public blockchain.

Digitally native security tokens are issued at the outset on blockchains in the form of smart contracts that pre-programme the whole lifecycle of coupon and principal repayments.

There are going to be more and more of them. If traditional finance does eventually transition onto new blockchain rails, new issues will lead the way.

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Peter Lee is Editorial Director. He joined Euromoney straight from Oxford University in 1985, and has written about banking and capital markets ever since, being appointed editor in 1999. He became editorial director of Euromoney in May 2005.
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