TradeFi: EU Bank Offers Bonds On The Public Ethereum Network

In a major development for the world’s largest smart contracts platform, the European Investment Bank has sold 2Y $121M of digital bonds, issued over the public Ethereum network through Goldman Sachs International, Santander, and Societe Generale on Apr 28. This news gives grants major credibility to the Ethereum blockchain as the global settlement layer and the price has responded favorably to it, crossing over $2700 and establishing a new all-time high.

Europe Investment Bank Bond Issuance On Ethereum - Bloomberg
Europe Investment Bank Bond Issuance On Ethereum – Bloomberg

Ethereum has benefited immensely from the influx of good news. Lately, DeFi and NFT have been the dominant narrative pushing the blockchain lately. Now traditional finance or TradeFi has joined the race. Major corporations are recognizing the blockchain as a dominant player in the field. Now with EIP1559 expected to be deployed this summer and Eth2 in full swing, ETH price is bound to do a lot better in the future.

About Ethereum 2.0

Ethereum 2.0 is the next big upgrade for the Ethereum network. It will bring Proof of Stake (POS), eWASM, and sharding. It will reduce the resources, required to run the Ethereum network, as well as bring scalability and performance improvements.

The Eth2 upgrade will start in three phases. The first Phase 0 Beacon Chain, expected by the end of Q2 2020, will introduce the staking facility. This comes after Phase 1 in Q1 2021. The latter will introduce sharding and allows data storage on shards, however, transactions can’t still be processed.

Phase 2 will make Ethereum 2.0 truly complete and the network operational, after its introduction at some point in 2022. It will bring the Ethereum WebAssembly (eWASM) replacing the now operational Ethereum Virtual Machine (EVM). Only after the Phase 2 rollout, proper execution of smart contracts and transactions can commence on the new Eth2 chain. The Eth1 and Eth2 chain will gradually merge with each other.

This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission – but the prices do not change for you! 🙂

Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future. 

More from Blockchain

Source link