According to Whale Alert monitoring service, a Ripple partner’s bond based on Ethereum has accrued the first $ 99,000 quarterly interest.

Santander issued a bond on the Ethereum blockchain in the amount of $ 20 million in September this year. The bond runs on the blockchain exclusively.

🧾 A #santander bond that was settled on #ethereum has accrued the first 99,000 USD quarterly interest. The series of transactions that are part of this are:https://t.co/sWIfjFirnehttps://t.co/wBYHhPL0hjhttps://t.co/hUu7bHNIKy — Whale Alert (@whale_alert) December 10, 2019

An annual bond with a quarterly coupon of 1.98% was acquired at a market price by one of the divisions of the financial and credit group Santander.

Santander Securities Services acts as the custodian and tokenization agent, and Santander Corporate & Investment Banking (CIB) acts as the dealer.

The process of the issued bond took five days, and the use of technology has reduced the number of intermediaries.

Santander claims to be the first financial institution tokenizing the entire process of issuing and settling bonds. The blockchain startup Nivaura, which issued the first Ethereum-based bonds in 2017, helped to complete the effort.

The Mutual Efforts Of Santander And Ripple

Santander and Ripple have been in partnership since 2015. Since then the bank has tested the apps several times running on blockchain technology. In early 2018, Santander UK CEO Ana Botin announced the launch of a service for users in Poland, the UK, Spain, and Brazil.

Representatives of the bank believe that the main advantage of Ripple technology is the high speed of cash transactions. Blockchain transfers are carried out within 24 hours, while the duration of transfers through analog providers takes up to several days.

In 2015, Santander funded Ripple for $ 4 million through its venture division InnoVentures. Later, a California company attracted investments totaling $ 32 million in financial round A Series.

Recall, that Santander introduced the One Pay FX cross-border payment blockchain application, which is based on xCurrent technology developed by Ripple, in April 2018. Initially, it was available to residents of Spain, the UK, Brazil, and Poland.

In the fall of 2017, Ripple entered into a partnership with American Express to create a payment system for investors. With its help, it is possible to make urgent and safe transfers to Santander user accounts.

This year, Santander is working on creating a “payment corridor,” through which customers from Latin America will be able to make money transfers to the United States.

In particular, for these purposes, it is planned to use the One Pay FX mobile app using Ripple’s xCurrent software.

At the same time, the bank is interested in blockchain technology, but not in cryptocurrencies.