Euroclear launches DLT solution for issuance of digital securities
Euroclear has announced the launch of its Digital Securities Issuance (D-SI) service, the first key milestone of Euroclear’s Digital Financial Market Infrastructure (D-FMI) strategy.
The service enables the issuance, distribution and settlement of fully digital international securities – Digitally Native Notes (DNN) – on Distributed Ledger Technology (DLT).
The inaugural DNN was issued by the World Bank, raising EUR 100 million to support the financing of the World Bank’s sustainable development activities and was listed on the Luxembourg Stock Exchange. Citi’s Issuer Services acted as the issuing and paying agent, TD Securities as the dealer, and Euroclear Bank as the issuer Central Securities Depository.
The D-SI service operates as part of Euroclear’s D-FMI DLT platform. The D-FMI is connected to the traditional settlement platform of Euroclear for secondary market operations on the DNN, granting investors full access to trading venues and liquidity management facilities. A key benefit of this service is full CSDR compliance.
Euroclear’s development of its D-FMI platform is an integral piece of the group’s overall strategy to advance digital infrastructure across financial markets. Recognising the potential of DLT to transform global capital markets, the launch will support the expansion of digital capabilities in the post trade space.
Lieve Mostrey, Euroclear group CEO, commented:
“Today’s launch marks an important moment for our clients and for the potential of digital assets. We strive to deliver technology solutions that empower investors, foster market transparency and support the growth and stability of all market participants. The integration of DLT in asset issuance is a critical step forward in the evolution of our ecosystem’s digital capabilities, as we continue to deliver on our goal of becoming a fully digital and data enabled Financial Market Infrastructure.”
“A transition to digitisation is underway in the capital markets. Euroclear’s new service offers issuers and investors an opportunity to take another step along this journey. The World Bank, as the issuer of the world’s first blockchain bond, is pleased to now be the first issuer to participate in this new service which offers full scalability and transparency” said Anshula Kant, Managing Director and Chief Financial Officer, World Bank Group.