BME, through Iberclear, BBVA and the Inter-American Development Bank (IDB), have completed the first bond issuance in Spain listed on a regulated market and recorded using blockchain technology advanced by ioBuilders. For the countries like Spain, Latin America and the Caribbean, the platform developed by the ioBuilders could serve as a basis for future issuances.
Ever since February of this year BME, BBVA, IDB, and ioBuilders have been operating on this pioneering project, in accordance with the development of a blockchain platform which permits the registration, trading in the secondary market and life cycle management of a bond issued in a regulated market. Smart contracts have been applied for the purchase and sale, execution of the distribution, settlement, and corporate events practices, making use of electronic money symbolized by BBVA for the management of cash during the issuance.
LACChain, an initiative endorsed by the IDB intends to accelerate the usage of blockchain technology to promote growth and development
This project has been managed by BME and ioBuilders – the fintech and enterprise solutions builder, for the development of the blockchain platform. In association with LACChain, an initiative endorsed by the IDB that intends to accelerate the usage of blockchain technology to promote growth and development.
In addition to its role as guaranty of digital money, BBVA has executed several crucial responsibilities, acting as digital custodian, and active bookrunner and tokenizer for the business. Citi has functioned as a representative. Iberdrola and Renta 4 have functioned as stakeholders in the bond.
Jesus Benito, the Chief Executive Officer (CEO) describes that this issue is additional evidence of the advanced essence of BME, to continuously seek enhancements all through technologies such as blockchain, to continue performing a prominent role in the modernization and digitalization of the financial market.
Hereby this issuance, BBVA develops its digital asset strategy in the financial markets based on tangible and conscious transactions.
Regina Gil, Head of Global Credit at BBVA described that BBVA wanted to assess whether blockchain transactions could be implemented with the current market structure in conditions of trades and system interconnectivity for institutional investors and underwriters. This pilot diminishes the issuance cost and time, which unfolds opportunities for smaller issuers and less advanced economies.
Irene Arias Hofman, CEO of IDB Lab, points out that, further than the technological aspects, the creation of this bond could have an extremely robust transformational social and economic effect. People believe it to bring about such major declines in costs and issuance frictions that they could lead to an increase of capital markets, making them accessible to small stakeholders. In favour of the IDB Group it is also a basis for upcoming developments to women’s entrepreneurship, finance green investments, and social influence of high strategic interest.
Gustavo De Rosa, Vice President of Finance and Administration, for Finance and CFO of IDB, stated that the bank is pleased to participate as an issuer in this pilot project and credits BME, BBVA and ioBuilders. Across the bank’s treasury department, IDB seeks to incessantly invent, by discovering innovative financial instruments and services that improve the social and economic development agenda of their member countries. The rapid growth the bank has seen in the use of blockchain technology and smart contracts is proof of the potential of this technology in terms of transparency, programmability, and redundancy in financial transactions.
The first issuance of a blockchain-based bond is an element of the strategy of the SIX group, to which BME belongs, of defining the future market structures. This project reiterates BME’s commitment to creating new blockchain-based solutions intended for stakeholders, ones which streamline processes and maintain the same mechanism, transparency, and security standards as regulated financial markets.