Israel to trial tokenised bonds

The Israeli Ministry of Finance and the Tel Aviv Stock Exchange have launched a pilot project to tokenize bonds called Eden. The Marker reports.

Participating in testing of the blockchain platform will be custodial-services provider Fireblocks, the software developer VMware, and unnamed banks.

The tests will begin in the coming days and are due to be completed by early 2023.

The pilot is expected to demonstrate cost reductions, improved issuance and clearing procedures for government bonds, greater transparency of processes, and reduced risks.

Participating banks will receive tokenised financial instruments to wallets via the project’s platform. They will transfer funds in digital currencies to the government of Israel. No further details are disclosed.

Earlier in 2021, the European Investment Bank attracted €100m via Ethereum bonds.

In June 2022, El Salvador acknowledged not being ready to issue bitcoin bonds in the near term.

The Latin American country planned to issue its first $1 billion by 15–20 March.

Earlier this year, ForkLog reported on Israel’s intermediate successes in launching the digital shekel.

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