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Euroclear introduces service for issuing digital securities and finalizes settlement of World Bank bond.
Euroclear has introduced a digital securities issuance service and successfully settled a 100-million-euro ($106 million) digital bond for the World Bank. This marks the initial phase of the Brussels-based settlement house’s strategy for digital infrastructure, as stated by the organization.
The three-year bond, referred to as a digitally native note, was issued by the World Bank’s lending division, the International Bank for Reconstruction and Development, to generate funds for sustainable development initiatives. It was listed on the Luxembourg Stock Exchange and finalized on Oct. 23.
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Euroclear’s digital infrastructure is integrated with its conventional platform for secondary operations and adheres to the European Union’s Central Securities Depositories Regulation. It utilizes R3’s Corda blockchain technology. Anshula Kant, managing director and chief financial officer of the World Bank Group, remarked:
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“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 was settled in accordance with English law. Citi Issuer Services served as the issuing and paying agent, while TD Securities acted as the issuer agent.
R3’s Corda powers first digital bond issuance on Euroclear’s Digital Financial Market Infrastructure | R3 https://t.co/rF4A7cErTq
— Digital Assets Daily (@AssetsDaily) October 24, 2023
Euroclear, recognized as one of the largest securities settlement houses globally, is following the path of numerous predecessors. The World Bank issued the first digital bond worldwide in 2018. This year, digital bonds have also been issued in Hong Kong in Hong Kong dollars and in Chinese yuan. The Luxembourg Stock Exchange recorded its first digital bond, denominated in Swedish krona, in June.
The Tel Aviv Stock Exchange completed a proof-of-concept for bond tokenization in June. DTCC, another major settlement house, announced the acquisition of digital infrastructure developer Securrency on Oct. 19, aiming to position itself “in a leading position to unlock the value of digital assets.”
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