The European Investment Bank, an international financial institution owned by EU member states, is reportedly exploring blockchain technology for issuing digital bonds.

According to a Bloomberg report on Tuesday, the European Investment Bank has instructed major global banks such as Goldman Sachs, Banco Santander and Societe Generale to look at a potential deal in blockchain-denominated bonds.

Referring to someone familiar with the matter, Bloomberg said that the European Investment Bank plans to distribute blockchain technology to register and redeem digital bonds. Meetings with investors for the opening of sales begin on April 15 and will last for several weeks.

The European Investment Bank did not immediately respond to Cointelegraph’s request for comment.

Blockchain, the most important technology for cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), has been increasingly used in the bond market in recent years. According to HSBC, blockchain offers “more than 10 times” savings in the bond market, which reduces the need for intermediaries and enables issuance through small businesses.

As an investment arm in the EU, the EIB has often been at the forefront of innovation in European debt capital markets. In 2007, the European Investment Bank issued the world’s first green bond, Climate Awareness Bonds.

The news comes as the European Central Bank prepares to decide whether to start exploring the digital euro. At the end of March, European Central Bank President Christine Lagarde suggested that the digital euro initiative would take at least four years if the bank decided to continue the experiment.

Source: CoinTelegraph