BANCO SANTANDER SUCCESSFULLY COMPLETES FIRST PRACTICAL BLOCKCHAIN INVESTOR VOTING PILOT

Last updated: June 19, 2025, 21:02 | Written by: Cathie Wood

In a groundbreaking move that could revolutionize shareholder engagement and corporate governance, Banco Santander, one of Europe's largest banks headquartered in Spain, has announced the successful completion of its first practical blockchain investor voting pilot.This pioneering initiative marks a significant step forward in leveraging distributed ledger technology (DLT) to enhance transparency, security, and efficiency in proxy voting processes. One of the largest banks in Europe, Spain-headquartered Santander has become the first company to use blockchain technology for investor voting, it announced May 17. The second blockchain-related first for Santander in just over a month, the bank partnered with US electronic data processing services company Broadridge Financial Solutions to facilitate an investor ballot at its annual generalConducted in collaboration with Broadridge Financial Solutions, a global fintech leader, the pilot demonstrated the potential of blockchain to transform how investors exercise their voting rights at annual general meetings (AGMs). Santander and Broadridge Complete a First Practical Use of Blockchain for Investor Voting at an Annual General Meeting Download (opens in new window)The project, involving custodians like J.P. BR Broadridge Financial Solutions Inc Santander and Broadridge Complete a First Practical Use of Blockchain for Investor Voting at an Annual General Meeting Ftse Mib 37.820,79Morgan and Northern Trust, paves the way for broader adoption of blockchain in the financial sector, promising a more secure and transparent future for shareholder voting.By addressing key challenges in traditional proxy voting, such as lack of transparency and operational inefficiencies, Santander and Broadridge are setting a new standard for corporate governance and investor engagement. After spending years developing a proprietary blockchain ledger for proxy voting, they recently revealed that its pilot run, that occurred last year at Banco Santander s AGM, was an overwhelming success. What many don t realize is that Broadridge essentially runs a monopoly over proxy voting services in the U.S.This accomplishment also represents a second blockchain-related milestone for Santander in just over a month, underscoring the bank's commitment to innovation and its proactive approach to adopting cutting-edge technologies.

The Significance of Blockchain in Investor Voting

The current system for investor voting, particularly proxy voting, is often plagued by inefficiencies and a lack of transparency.Traditionally, the process involves multiple intermediaries, making it complex, time-consuming, and prone to errors.Blockchain technology offers a potential solution by creating a secure, transparent, and immutable record of each vote, ensuring accuracy and accountability.

Consider the traditional process: shareholders often delegate their voting rights to proxy advisors or custodians.The information must flow through numerous entities before reaching the company. Santander and Broadridge Complete a First Practical Use of Blockchain for Investor Voting at an Annual General Meeting - Santander and Broadridge, in collaboration with J.P. Morgan and Northern Trust as custodian banks, conducted the pilot on March 23rd for Santander's annual general meeting (AGM), including participation from Banco Santander Corporate Services as the issuer's agent.This can result in delays, inaccuracies, and a lack of clarity regarding the ultimate outcome.Blockchain streamlines this process by providing a direct and transparent channel for investors to exercise their rights.

The successful completion of Santander's pilot highlights several key benefits:

Enhanced Transparency: Every vote is recorded on a distributed ledger, providing a clear and auditable trail.
Increased Efficiency: Eliminating intermediaries reduces processing time and lowers costs.
Improved Security: Blockchain's cryptographic security features protect against fraud and tampering.
Better Analytics: The immutable record allows for more accurate and insightful analysis of voting patterns.

Santander and Broadridge: A Collaborative Effort

The blockchain investor voting pilot was a collaborative effort between Banco Santander and Broadridge Financial Solutions. MADRID and LAKE SUCCESS, N.Y, /PRNewswire/ - Banco Santander, S.A. (BME:SAN) and Broadridge Financial Solutions, Inc. (NYSE:BR), a global fintech leader, have completed a firstBroadridge, a major player in proxy voting services, brought its industry expertise and technological capabilities to the table.Santander, as the issuer, provided a real-world testing ground for the technology at its AGM.

This partnership is particularly notable because Broadridge essentially handles the bulk of proxy voting services in the U.S., and its embrace of blockchain technology signals a potentially significant shift in the industry.By working together, Santander and Broadridge demonstrated the feasibility and benefits of applying blockchain to a critical aspect of corporate governance.

Specifically, the pilot involved:

Adapting distributed ledger technology (DLT) for investor ballot at Santander’s annual general meeting (AGM).
Collaboration with custodian banks, including J.P. Banco Santander, S.A. (BME:SAN) and Broadridge Financial Solutions, Inc. (NYSE:BR), a global fintech leader, have completed a first practical use ofMorgan and Northern Trust.
Integration of Banco Santander Corporate Services as the issuer's agent.

How the Blockchain Voting Pilot Worked in Practice

The pilot program leveraged Broadridge's blockchain solution to record and track investor votes securely and transparently.The system utilized a permissioned blockchain, meaning that only authorized participants, such as the issuer, custodian banks, and voting participants, had access to the ledger.Each vote was recorded as a transaction on the blockchain, ensuring its immutability and auditability.

The process likely involved these steps:

Investors received their proxy materials electronically.
They cast their votes through a secure online portal linked to the blockchain.
Votes were recorded on the distributed ledger, creating an immutable record.
Authorized parties could verify the votes in real-time, ensuring accuracy.
Results were tabulated directly from the blockchain, eliminating potential for manipulation.

This streamlined process offered significant advantages over traditional methods, reducing the risk of errors and increasing confidence in the integrity of the voting process.

Benefits of Blockchain Voting for Investors and Issuers

The successful completion of Santander's pilot demonstrates that blockchain technology offers a multitude of benefits for both investors and issuers.

Benefits for Investors

Increased Transparency: Investors can track their votes and verify that they have been accurately recorded.
Enhanced Security: Blockchain's cryptographic security protects against fraud and tampering.
Greater Convenience: Electronic voting streamlines the process and makes it easier for investors to participate.
Potentially Lower Costs: Reducing intermediaries can lower the cost of voting for investors.

Benefits for Issuers

Improved Accuracy: Blockchain eliminates errors and ensures that votes are accurately counted.
Reduced Costs: Streamlining the voting process can lower administrative costs.
Increased Participation: Easier voting encourages more investors to participate in corporate governance.
Enhanced Reputation: Embracing blockchain technology demonstrates a commitment to transparency and innovation.
Better Analytics: Access to more detailed and accurate voting data provides valuable insights for corporate decision-making.

Addressing Challenges and Future Considerations

While the Santander pilot was a resounding success, there are challenges and considerations to address before blockchain voting becomes widely adopted.

Scalability

One of the primary concerns is scalability. One of the largest banks in Europe, Spain-headquartered Santander has become the first company to use blockchain technology for investor voting, it announced May 17. The second blockchain-relatedCan blockchain networks handle the high volume of transactions required for large-scale investor voting?Further testing and optimization are needed to ensure that blockchain solutions can meet the demands of a global market.

Regulation

Clear regulatory frameworks are essential to provide legal certainty and ensure that blockchain voting complies with existing laws and regulations. ธนาคาร Santander เป็นบริษัทแรกที่ใช้เทคโนโลยี Blockchain ในการโหวตภายในองค์กร ต่างประเทศ, เทคโนโลยี BlockchainRegulators need to work with industry stakeholders to develop guidelines that promote innovation while protecting investors.

Interoperability

To maximize the benefits of blockchain voting, different blockchain platforms need to be interoperable.This will allow investors to use their preferred voting platforms and ensure that votes can be seamlessly transferred across different systems.

Data Privacy

Protecting investor data is crucial. MADRID and LAKE SUCCESS, N.Y, /PRNewswire/ - Banco Santander, S.A. (BME:SAN) and Broadridge Financial Solutions, Inc. (NYSE:BR), a global fintech leader, have completed a first practical use of blockchain for investor voting at an annual general meeting (AGM). The implementation of a solution that employs blockchain technologyBlockchain solutions need to be designed to comply with data privacy regulations, such as GDPR, and ensure that sensitive information is protected from unauthorized access.

Impact on the Broader Financial Industry

The successful completion of Santander's blockchain investor voting pilot is likely to have a ripple effect across the broader financial industry.Other companies are likely to take notice and explore how blockchain technology can be used to improve their own corporate governance processes.The implementation of blockchain can positively impact proxy vote transparency.

Here's how this innovation could impact the financial world:

Accelerated Adoption of Blockchain: The pilot's success validates the potential of blockchain for financial applications and encourages further investment in the technology.
Increased Focus on Transparency: The demand for greater transparency in corporate governance is likely to increase, driving more companies to adopt blockchain-based solutions.
Innovation in Voting Platforms: The development of new and improved voting platforms is likely to accelerate, providing investors with more convenient and secure ways to exercise their rights.
Enhanced Corporate Governance: By improving the accuracy and transparency of voting processes, blockchain can help to strengthen corporate governance and promote greater accountability.

Why Transparency in Investor Voting Matters

Transparency in investor voting is critical for maintaining investor confidence and fostering a healthy corporate environment. Banco Santander and Broadridge Financial Solutions have completed a first practical use of blockchain for investor voting. The implementation includes a solution that employs blockchain technology enhances global proxy vote transparency. Additionally, it increases operational efficiency, securityWhen investors trust that their votes are being accurately recorded and counted, they are more likely to participate in corporate governance and hold management accountable.

Lack of transparency, on the other hand, can erode investor confidence and lead to distrust.This can have negative consequences for companies, including lower stock prices and difficulty attracting investment.

Blockchain technology offers a powerful tool for promoting transparency in investor voting and building trust between companies and their shareholders.

Santander's Commitment to Blockchain Innovation

Banco Santander has consistently demonstrated a commitment to exploring and adopting blockchain technology. Broadridge Financial Solutions, Inc. (NYSE: BR), J.P. Morgan, Northern Trust and Banco Santander today announced the successful completion of a pilot which employs a blockchain technology to enhance global proxy vote transparency and analytics. The pilot, Broadridge's first application of blockchain technology, provides transparency by adapting distributed ledger technology capabilities toThe successful completion of the investor voting pilot is just one example of the bank's proactive approach to innovation. Banco Santander, S.A. (BME:SAN) and Broadridge Financial Solutions, Inc. (NYSE:BR), a global fintech leader, have completed a first practical use of blockchain for investor voting at an annual general meeting (AGM). The implementation of a solution that employs blockchain technology enhances globalTheir second blockchain related success in a short time confirms their commitment.

Santander has also been involved in other blockchain initiatives, including:

Developing a proprietary blockchain ledger for proxy voting.
Exploring the use of blockchain for cross-border payments.
Participating in industry consortia focused on blockchain development.

By investing in blockchain technology and collaborating with industry partners, Santander is positioning itself as a leader in the digital transformation of the financial sector.

How Other Companies Can Follow Santander's Lead

Other companies can learn from Santander's experience and take steps to explore how blockchain technology can improve their own corporate governance processes.

Here are some actionable steps that companies can take:

Educate themselves about blockchain technology: Understanding the basics of blockchain and its potential applications is essential.
Identify pain points in their existing voting processes: Determine where improvements can be made to increase transparency, efficiency, and security.
Partner with blockchain technology providers: Work with experienced providers to develop and implement blockchain-based solutions.
Conduct pilot programs: Test blockchain solutions on a small scale before implementing them company-wide.
Engage with regulators: Stay informed about regulatory developments and ensure that blockchain solutions comply with applicable laws and regulations.

Future of Blockchain in Corporate Governance

The successful completion of Santander's blockchain investor voting pilot represents a significant milestone in the evolution of corporate governance. Investor voting became a target for Santander s blockchain experimentation at its March annual general meeting. One of the largest banks in Europe, Spain-headquartered Santander has become the first company to use blockchain technology for investor voting, it announced May 17. The second blockchain-related first for Santander in just over a month, the bank partnered with MoreAs blockchain technology matures and becomes more widely adopted, we can expect to see even more innovative applications emerge.

Some potential future developments include:

Smart contracts for automated voting: Smart contracts can be used to automate the voting process and ensure that votes are executed according to predetermined rules.
Decentralized autonomous organizations (DAOs): DAOs can be used to create self-governing organizations that are managed by code rather than traditional hierarchies.
Tokenized voting rights: Voting rights can be tokenized and traded on blockchain-based exchanges, providing investors with greater liquidity and flexibility.

Conclusion: A New Era for Investor Engagement

Banco Santander's successful completion of its first practical blockchain investor voting pilot marks the beginning of a new era for investor engagement and corporate governance. One of the largest banks in Europe, Spain-headquartered Santander has become the first company to use blockchain technology for investor voting, it announced May 17.[BREAK] The second blockchain-related first for Santander in just over a month, the bank partnered with US electronic data processing services company Broadridge Financial Solutions to facilitate an investor ballot at its annualBy leveraging the power of blockchain technology, companies can enhance transparency, security, and efficiency in voting processes, empowering investors and fostering a more accountable corporate environment.This pilot, conducted with Broadridge, J.P. Als eine der gr ten Banken in Europa hat Santander mit Hauptsitz in Spanien als erstes Unternehmen die Blockchain-Technologie f r eine Aktion rsabstimmung eingesetzt, teilte das Unternehmen am 17. Mai mit. Um eine Investorenabstimmung auf der Hauptversammlung am 23. M rz mit BlockchainMorgan and Northern Trust, showcases a significant move towards greater transparency in proxy voting. Santander and Broadridge Complete a First Practical Use of Blockchain for Investor Voting at an Annual General Meeting - Santander and Broadridge, in collaboration with J.P. Morgan and Northern Trust as custodian banks, conducted the pilot on March 23(rd) for Santander's annual general meeting (AGM), including participation from Banco Santander Corporate Services as the issuer's agent.As more companies follow Santander's lead and embrace blockchain-based solutions, we can expect to see a fundamental shift in how corporations interact with their shareholders. Banco Santander Successfully Completes First Practical Blockchain Investor Voting Pilot One of the largest banks in Europe, Spain-headquartered Santander has become the first company to use blockchain technology for investor voting, it announced May 17.The key takeaways from this pioneering initiative are clear: blockchain offers a viable and transformative solution for enhancing investor voting, improving corporate governance, and building trust in the financial system.Santander's commitment to innovation sets a new standard, demonstrating the potential of blockchain to create a more transparent, efficient, and secure future for shareholder democracy. Santander and Broadridge Complete a First Practical Use of Blockchain for Investor Voting at an Annual General Meeting Santander and Broadridge, in collaboration with J.P. Morgan and Northern Trust as custodian banks, conducted the pilot on March 23rd for Santander s annual general meeting (AGM), including participation from BancoThe success of this pilot emphasizes the power of transparency in investor voting.