April 19, 2024
Euroclear's pioneering €100 million digital World Bank bond
Latest Cryptocurrency News

Euroclear Launches Digital Securities Service with €100 Million World Bank Bond

Euroclear has introduced a digital securities issuance service and successfully executed a €100 million digital World Bank bond, marking the initial stage of the Brussels-based settlement house’s digital infrastructure strategy. The three-year bond, referred to as a digitally native note, was issued by the International Bank for Reconstruction and Development, a lending arm of the World Bank, with the purpose of raising funds for sustainable development. It was officially listed on the Luxembourg Stock Exchange and finalized on October 23. Euroclear’s digital infrastructure seamlessly integrates with its conventional secondary operations platform and is fully compliant with the European Union’s Central Securities Depositories Regulation, all powered by R3’s Corda blockchain technology.

In the words of World Bank Group Managing Director and Chief Financial Officer Anshula Kant, “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 issuance adhered to English law, with Citi Issuer Services fulfilling the role of the issuing and paying agent, and TD Securities acting as the issuer agent. Euroclear, among the world’s leading securities settlement houses, is following a path established by several predecessors. Notably, the World Bank pioneered the issuance of the world’s first digital bond in 2018, and in the current year, digitalized bonds have been launched in Hong Kong dollars and Chinese yuan. In June, the Luxembourg Stock Exchange marked a milestone by registering its inaugural digital bond, denominated in Swedish krona.

Additionally, in June, the Tel Aviv Stock Exchange successfully completed a proof-of-concept for tokenizing bonds. Meanwhile, DTCC, another prominent settlement house, made a significant announcement on October 19 when it revealed its acquisition of digital infrastructure developer Securrency, positioning itself as a leader in unlocking the potential of digital assets.

Image by freepik

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