The European Investment Bank (EIB), the European Union’s lending arm, announced Wednesday that it issued its first-ever bond on the Ethereum blockchain. 

The bond, issued yesterday, is worth €100 million ($121 million) and will mature on April 28, 2023. Money from underwriters — those assuming risk by buying into a bond — is represented as a central bank digital currency (CBDC) on the Ethereum public blockchain. 

Investment banks Goldman Sachs, Banco Santander, and Société Générale will oversee the sale of the bond, which will be governed under French law. 

“Innovation at the EIB goes beyond the projects we are supporting. As a global leader in the green and sustainability bond markets, the EIB is clearly well‑placed to lead the way now in the issuance of digital bonds on blockchain. These digital bonds will play a role in giving the Bank a quicker and more streamlined access to alternative sources of finance to boost finance for projects across the globe,” Mourinho Félix, vice president for EIB, said in a statement.

According to the EIB, benefits from such bond digitalization include reducing fixed costs and costs from intermediaries, improved market transparency, and quicker settlement speed. “These digital bonds will play a role in giving the Bank a quicker and more streamlined access to alternative sources of finance to boost finance for projects across the globe,” EIB vice president Mourinho Félix said in a statement.