<p>Spanish banking giant Santander has issued and settled a $20 million bond on the Ethereum blockchain.</p> <p>The bank itself is the issuer, it <a href="https://www.santander.com/csgs/Satellite/CFWCSancomQP01/en_GB/Corporate/Press-room/2019/09/12/Santander-launches-the-first-end-to-end-blockchain-bond.html">announced</a> Thursday, adding that the bond carries a quarterly coupon of 1.98%. The one-year bond will exist on the blockchain until maturity.</p> <p>Santander Securities Services is serving as a tokenization agent and custodian of the cryptographic keys for the tokenized bond and tokenized cash. “The cash used to complete the investment (on-chain delivery-versus-payment) and the quarterly coupons have also been tokenised, i.e., represented digitally on the blockchain,” the bank explained.</p> <p>The automation of end-to-end process has helped Santander reduce the number of intermediaries required in the process, thus making the transaction “faster, more efficient and simpler.”</p> <p>London-based fintech startup Nivaura lent technical support to Santander, while law firm Allen &amp; Overy provided legal advice, per the announcement. Santander also has a stake in Nivaura, having <a href="https://www.santander.com/csgs/Satellite/CFWCSancomQP01/en_GB/Corporate/Press-room/Santander-News/2019/02/27/Santander-InnoVentures-invests-in-Nivaura-a-startup-focused-on-automating-the-issuance-of-securities.html">invested</a> in the startup via its venture arm, Santander InnoVentures, in February.</p>