{"id":52682,"date":"2023-06-20T09:39:20","date_gmt":"2023-06-20T13:39:20","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=52682"},"modified":"2023-06-20T09:39:23","modified_gmt":"2023-06-20T13:39:23","slug":"eib-uses-blockchain-for-climate-awareness-bond","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/eib-uses-blockchain-for-climate-awareness-bond\/","title":{"rendered":"EIB Uses Blockchain for Climate Awareness Bond"},"content":{"rendered":"\n

The European Investment Bank (EIB) has issued a blockchain-based digital bond. The Swedish Krona-based Climate Awareness Bond is enabled by node operators to improve the environmental footprint <\/a>of infrastructure.<\/p>\n\n\n\n

\"EIB
EIB Uses Blockchain for Climate Awareness Bond<\/figcaption><\/figure>\n\n\n\n

A statement from the financial institution outlined the main characteristics of a ‘digital native green bond' denominated in Swedish krona. The 1 billion krone bond will offer institutional investors a fixed interest rate of 3.638% over two years.<\/p>\n\n\n\n

The Climate Awareness Bond is also promoted as the first blockchain-based bond registered on the Luxembourg Stock Exchange \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>Securities Official List and displayed on the Luxembourg Green Exchange.<\/p>\n\n\n\n

The bond will operate on So|bond, a recently launched blockchain-based digital bond platform. As reported, the platform enables the issuance, trading, and settlement of digital bonds by providing environmental incentives for its node administrators.<\/p>\n\n\n\n

Proof of Climate awaReness is a protocol developed by So|bond that incentivizes nodes to reduce the environmental impact of their infrastructure. This is accomplished by compensating nodes based on a formula relating to their climatic impact, with lower impact ratings resulting in greater rewards.<\/p>\n\n\n\n

French IT provider Finaxys developed the protocol, whereas So|bond is a joint project administered by Skandinaviska Enskilda Banken (SEB) and Credit Agricole CIB.<\/p>\n\n\n\n

Ricardo Mourinho Felix, vice president of the EIB, stated that the first-ever green and SEK-denominated bond seeks to utilize blockchain technology to advance toward more sustainable financial systems<\/a>.<\/p>\n\n\n\n

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\u201cThis Climate Awareness bond will run on a platform designed to minimise the environmental footprint of the IT infrastructure.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Ben Powell, manager of sustainable DCM at SEB, added that perceptions of high energy consumption have restricted blockchain technology adoption in recent years. So|bond aims to reduce the environmental impact of financial infrastructure by employing a technology that has been traditionally criticized for its carbon footprint:<\/p>\n\n\n\n

\n

\u201cThe platform we have built aims to address this by introducing a disclosure of the environmental footprint of the operators of the network.\u201c<\/em><\/p>\n<\/blockquote>\n\n\n\n

Over the past three years, the EIB has investigated the use of blockchain-based platforms for digital bonds. In April 2021, ETH reached all-time highs due to rumors of an EIB-issued digital bond based on Ethereum. <\/p>\n\n\n\n

In collaboration with Goldman Sachs and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale Luxembourg, the institution subsequently resolved a 100 million euro ($103.7 million) digital bond on a private blockchain platform.<\/p>\n","protected":false},"excerpt":{"rendered":"

The European Investment Bank (EIB) has issued a blockchain-based digital bond. The Swedish Krona-based Climate Awareness Bond is enabled by node operators to improve the environmental footprint of infrastructure. A statement from the financial institution outlined the main characteristics of a ‘digital native green bond’ denominated in Swedish krona. The 1 billion krone bond will […]<\/p>\n","protected":false},"author":12,"featured_media":52695,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[202,14955,12476,14956],"class_list":["post-52682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-blockchain","tag-climate-awareness-bond","tag-eib","tag-european-investment-bank"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/06\/image-44.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/52682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=52682"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/52682\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/52695"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=52682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=52682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=52682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}