Spanish banking giant, Santander has become the first institution that issued and settled a $20 million debt using the ERC-20 token representing cash in custody account. This transaction helps in forming a landmark for banking institutions and public blockchains. Santander settled both the sides of a bond issue with the help of this technology.
This successful transaction has opened ways for broader adoption of the blockchain by more institutions for the issuing and settling of the debts. Instead of using the same old common practice of settling the cash with the analog-only ledger, blockchain will be an easier way to do the transactions.
No third-party investors were involved in the settlement, and along with this, they also used Santander Security Services to keep the private keys that were involved in the tokenized security and cash settlement.