The World Bank and Euroclear are teaming up to introduce a Blockchain-native digital security issuance | Taza Khabre

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Belgium-based bank Euroclear has launched the first native digital security on the Luxembourg Stock Exchange alongside the World Bank.

The issuance of digital bonds of 100 million euros – Digitally Native Notes (DNN) – by the World Bank involves the distribution and settlement of fully digital financial assets through distributed ledgers, a company Press release pointed out.

During the issuance of digital securities via the blockchain, Citi Group Issuance Services acted as the issuing and paying agent and Canadian investment bank TD Securities acted as the distributor.

“The integration of DLT into asset issuance is a critical step forward in the evolution of our ecosystem’s digital capabilities as we continue to meet our goal of becoming a fully digital and data-enabled financial market infrastructure ” said Lieve Mostrey, CEO of the Euroclear Group.

Last year, the Luxembourg Stock Exchange became the first in Europe to admit three digital securities issued by Société Générale, followed by the European Investment Bank.

According to the announcement, R3’s Corda blockchain served as the platform for this digital bond issuance, demonstrating confidence in the nascent technology.

The main objective of the issue is to establish a scalable framework, combining the advantages of digitization with the accessibility and liquidity of bonds. “Recognizing the potential of DLT to transform global capital markets, the launch will support the expansion of digital capabilities in the post-trade space,” the announcement said.

What’s more, it also has the potential to transform the way debt capital markets work and shows the continued value of the international issuance model, says Andrew Mulley, Citi’s head of issuer services in EMEA.

The developments also encompass Citi’s various offerings, including digital currencies, commercial securities, custody services and asset services.

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