The European Investment Bank, an international financial institution owned by European Union member states, is reportedly exploring blockchain technology for issuing digital bonds.

According to a Tuesday Bloomberg report, the EIB has hired major global banks such as Goldman Sachs, Banco Santander and Société Générale to look at a potential deal involving a euro-denominated bond issued on a blockchain. 

Citing a person familiar with the matter, Bloomberg states that the EIB is planning to deploy blockchain technology for the registration and settlement of digital bonds. Investor meetings for the inaugural sale will reportedly start on Thursday and continue for several weeks.

The EIB did not immediately respond to Cointelegraph’s request for comment.

Blockchain, the underlying technology of cryptocurrencies like Bitcoin (BTC) and Ether (ETH), has been increasingly implemented in the bond market in recent years. According to HSBC, blockchain presents cost savings opportunities of “more than 10x” for the bond market, reducing the need for intermediaries and enabling issuance by smaller projects.

As the European Union’s investment arm, the EIB has often been at the forefront of innovation in Europe’s debt capital markets. Back in 2007, the EIB issued the world’s first green bond, labeled a Climate Awareness Bond. 

The news comes as the European Central Bank prepares to decide on whether it will begin exploring a digital euro. In late March, ECB President Christine Lagarde suggested that the digital euro initiative would take at least four years should the bank decide to proceed with a pilot.