The bond had a total issue amount of $110 million and was purchased by IDB Invest through a transaction carried out on the LACChain Blockchain network. Davivienda has been one of the pioneers in working with Blockchain technology in Colombia.
Banco Davivienda and the IDB group issued the first Blockchain bond in Latin America and the Caribbean. This action is part of a pilot within the Sandbox of the Financial Superintendence of Colombia.
According to an official report, the issuance of the first Blockchain bond in Latin America completed the processes of authorization, initial registration, and subsequent cancellation of the registration of the bond in the National Registry of Securities and Issuers (RNVE). Furthermore, the issuance, trading, recording of payments, and fulfillment of the bond were all done on the Blockchain.
The Pilot Study in Detail
This pilot was made possible thanks to the joint work of Banco Davivienda, IDB Group, SFC, Banco de la República, and LACChain, which included financial, operational, technological, legal, and regulatory solutions.
The bond had a total issue amount of 110 million dollars and was purchased by IDB Invest through a transaction carried out on the LACChain Blockchain network.
A Project Designed to Promote Financial Inclusion
According to Javier Suárez, president of Davivienda, the success of this pilot means an opportunity to continue working for financial inclusion, this time from the stock market:
“Davivienda has been one of the pioneers in working with Blockchain technology in Colombia. On this occasion, we are very happy to be able to announce the success of this first pilot, which we were able to develop together with such important allies.”
For Suarez, the use of this technology transforms the role of actors in the securities market and the way bonds are issued and processed, resulting in a more transparent, fast, and secure market.
He states that, “this favors the reduction of costs and the complexity of emissions, allowing the entry of more and more participants.”
The Great Benefits of the First Blockchain Bond in Latin America
Davivienda highlighted several points that turn out to be great advances after the issuance of the Blockchain bond. According to the entity, this pilot makes it possible to understand the benefits of using new decentralized technologies such as Blockchain, increases the efficiency of the capital market in the region, and opens the way to promote the use of decentralized finance in Colombia.
Similarly, Kelvin Suero, acting representative of the IDB Group in Colombia, indicated that this is an example of how the work between the IDB Group and the public and private sectors of the countries can lead to innovation in capital markets.
He believes that, “the pilot opens the doors to fundamental changes in the existing precepts in securities trading and allows new models to be explored in the future to generate more financial inclusion. We hope that similar pilots can be replicated in Latin America and the Caribbean.”
By Audy Castaneda
