Earlier this week, former Goldman Sachs executive Raoul Pal, who is seen as an important influencer in the crypto community, gave one important example of Ethereum’s wide range of use cases.
Prior to founding macro economic and investment strategy research service Global Macro Investor (GMI) in 2005, Pal co-managed the GLG Global Macro Fund in London for global asset management firm GLG Partners (which is now called “Man GLG”). Before that, Pal worked at Goldman Sachs, where he co-managed the European hedge fund sales business in Equities and Equity Derivatives. Currently, he is the CEO of finance and business video channel Real Vision, which he co-founded in 2014.
Pal told his 471K+ Twitter followers about the European Investment Bank (EIB), which is “the lending am of the European Union”, issuing “its first ever digital bond on a public blockchain.” This blockchain was Ethereum.
According to the EIB’s press release:
- “On 27 April 2021, the EIB launched a digital bond issuance on a blockchain platform, deploying this distributed ledger technology for the registration and settlement of digital bonds, in collaboration with Goldman Sachs, Santander and Societe Generale.“
- “In a partnership with Banque de France, the payment of the issue monies from the underwriters to the EIB has been represented on the blockchain in the form of CBDC.“
- “The EIB believes that the digitalisation of capital markets may bring benefits to market participants in the coming years, including a reduction of intermediaries and fixed costs, better market transparency through an increased capacity to see trading flows and identity asset owners, as well as a much faster settlement speed.“
Pal said that this is “a test that tacitly accepts that crypto offers better settlement, custody and transfer for the global bond market” and that ultimately “securities of all types will migrate across to public blockchains”. He went on to say this example illustrates “how massively dominant ETH currently is for use cases”.