Euroclear has launched a digital securities issuance service and settled digital World Bank bonds worth €100 million ($106 million).This is the first step in the Brussels-based clearing house’s digital infrastructure strategy, which explain.
The three-year bonds, known as digital native notes, were issued by the International Bank for Reconstruction and Development, the World Bank’s lender, to raise funds for sustainable development. The listing on the Luxembourg Stock Exchange was completed on October 23.
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Euroclear’s digital infrastructure connects to its legacy platform for secondary operations and is compliant with EU central securities depository regulations. It runs on R3’s Corda blockchain technology. Anshula Kant, Managing Director and Chief Financial Officer of the World Bank Group, said:
“Capital markets are undergoing a digital transformation. Euroclear’s new services offer issuers and investors the opportunity to take another step on this journey.”
The offering is settled under English law. Citi Distribution Services Inc. is acting as the offering and paying agent, and TD Securities is acting as the offering agent.
R3’s Corda powers first digital bond issuance on Euroclear digital financial markets infrastructure | R3 https://t.co/rF4A7cErTq
— Digital Assets Daily (@AssetsDaily) October 24, 2023
Euroclear, one of the world’s largest securities clearing companies, is following in the footsteps of many before it. The World Bank issued the world’s first digital bond in 2018. This year alone, Hong Kong has issued digital bonds in Hong Kong dollars and renminbi. The Luxembourg Stock Exchange registered the first digital bond denominated in Swedish krona in June.
The Tel Aviv Stock Exchange completed a proof-of-concept for bond tokenization in June. Another large settlement company, DTCC, announced on October 19 the acquisition of digital infrastructure developer Securrency, hoping to put itself “in a leading position in unlocking the value of digital assets.”
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