EIB issues 6th digital bond; Iran’s CBDC launch nears [Video]

The global financial and payments ecosystem is gradually transforming with the advent of central bank digital currencies (CBDCs), which financial institutions worldwide continue to look into in the hopes of finding new use cases. The European Investment Bank (EIB) is the latest institution to be reported working on advancing its CBDC ambitions with the issuance of its sixth digital bond.

The EIB’s latest move is a €100 million ($104.8 million) issuance relying on the Banque de France’s wholesale CBDC offering for settlement. The novel settlement strategy employed by the EIB has triggered a wave of optimism among financial ecosystem players, given its atomic settlement functionality via delivery rather than payment.

The EIB turned to Goldman Sachs’ (NASDAQ: GS) GS DAP platform for bond tokenization, with the international financial giant filling the role of lead manager. German-based financial institutions DZ Bank and Landesbank Baden-Württemberg (LBBW) will join Goldman Sachs as joint lead managers.

GS DAP is a Goldman Sachs distributed …