Former managing director of Goldman Sachs earlier this week Raoul Pal, seen as a major influencer in the crypto community, gave a key example of Ethereum’s wide range of use cases.
Before founding the Macroeconomics and Investment Strategy research service Global Macro Investor (GMI) In 2005, Pal was co-manager of the GLG Global Macro Fund in London for global asset management company GLG Partners (now referred to as “Man GLG”). Pal previously worked at Goldman Sachs, where he co-managed the European hedge fund distribution business for stocks and equity derivatives. He is currently the CEO of the financial and business video channel Real vision, which he co-founded in 2014.
Pal told his 471K + Twitter followers about the European Investment Bank (EIB), “the European Union’s lending agency” which is issuing “its first digital bond on a public blockchain”. That blockchain was Ethereum.
According to the EIB Press release::
- “On April 27, 2021, the EIB, in partnership with Goldman Sachs, Santander and Societe Generale, launched a digital bond issue on a blockchain platform and used this distributed ledger technology for the registration and settlement of digital bonds.”
- “In a partnership with the Banque de France, the payment of the issuing monies from the subscribers to the EIB was represented in the form of CBDC in the blockchain.”
- “The EIB believes that the digitization of capital markets could bring benefits to market participants in the coming years, including a reduction in intermediaries and fixed costs, better market transparency through increased ability to see trade flows and identity asset owners, and much faster Processing speed. “
Dude said that this “is a test that tacitly accepts that crypto provides better settlement, custody and transmission for the global bond market” and that ultimately “securities of all kinds will migrate to public blockchains”. This example illustrates “how massively dominant ETH is currently for use cases”.
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