Austrian Bank Will Use Ethereum Blockchain For Issuing $1.35 bln Bonds

Austrian Bank Will Use Ethereum Blockchain For Issuing $1.35 bln Bonds

Ethereum blockchain will soon be used for knitting a huge quantity of government bonds in Austria. According to local media, this will be the first time of DLT usage by authorities in the country.

Austria Jumping On Blockchain Bandwagon

Kleine Zeitung reported that Austrian govt is intending to employ Ethereum public blockchain for emitting govt bonds. The news outlet highlighted that the number of bonds will be worth $1.35 billion (€1.15 billion), and the issuing in an auction will take place during the upcoming week. 

It is one of the country’s largest banks — Oesterreichische Kontrollbank — which will run the live DLT notarization service. The auction is planned for October 2, and OeKB will emit the bonds via blockchain on behalf of the country’s treasury. 

Hartwig Löger, the Finance Minister of Austria, singled out that his department believes that DLT helps to concentrate on economic policy. Löger also added that with the help of FinTech Advisory Council, which is being set at the moment, the Finance Ministry of Austria will make everything for the country to take advantage of the blockchain. 

Dealing With Ethereum Blockchain For The First Time 

The most considerable Austrian bank with $26 billion in assets in 2017 says it will be the first time DLT-based notarization service will be employed in the frames of Federal Bond Auction. 

The media report that the procedure has been successfully tested. And it is expected that further on it will build on a special system. The latter has already been created inwardly by OeKB and it will notarize data from Austrian Direct Auction System “as hash values" on the Ethereum DLT.

The media outlet points out that the employment of the blockchain, in this case, is not more than for emitting tokenized bonds. They, by the way, will be operating on par with existing paper or digital schemes.