Euroclear launches DLT solution

Brussels  24 October 2023 - Euroclear is pleased to announce 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 (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), 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: “Euroclear has been at the forefront of innovation in financial markets for more than 50 years. 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.

“We are pleased to partner with Euroclear and the International Bank for Reconstruction and Development, on this innovative issuance. It has the potential to transform the way in which the debt capital markets operate, and shows the continued value of the international issuance model. Together we continue to progress innovative solutions that deliver transparency, efficiency, liquidity, and improved client experience” said Andrew Mulley, EMEA Head of Citi's Issuer Services.

Riaz Ahmed, President and CEO, TD Securities added: "TD Securities is delighted to have acted in partnership with Euroclear, the World Bank and Citi as the issuer agent on this transaction, which marks another crucial milestone on the path to revolutionise and digitize global capital markets. The World Bank continues to demonstrate their commitment to innovation in financial markets and once again takes a leading role with this trade. We are pleased to work alongside Euroclear, the World Bank and Citi as the issuer agent and we look forward to seeing how increasing utilisation of DLT technologies in capital markets will deliver opportunities that will benefit all market participants."

Euroclear group is the financial industry’s trusted provider of post trade services. Guided by its purpose, Euroclear innovates to bring safety, efficiency and connections to financial markets for sustainable economic growth. Euroclear provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives, and investment funds. As a proven, resilient capital market infrastructure, Euroclear is committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise. The Euroclear group comprises Euroclear Bank, the International CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden, Euroclear UK & International and MFEXbyEuroclear.