Issuance of France's first Digitally Native Note

Paris/Brussels, 7 November 2024 -The French financial association Paris Europlace brought together key players of France’s financial ecosystem to maintain Paris’ appeal in the digital finance area. On 7 November, the first Digitally Native Note in bearer form under French law was successfully issued by Caisse des Dépôts et Consignations (CDC), facilitated by Euroclear and settled using Banque de France’s DL3S platform for digital currency.

This issuance with a size of EUR 100 million is part of the European Central Bank trials which aim to explore the potential of Distributed Ledger Technology (DLT) for settling wholesale transactions in central bank money. Paris Europlace established a working group with banks and asset managers who rallied around this initiative, contributing to the French market’s pioneering efforts in digital asset securities.

BNP Paribas’ Securities Services business served as the issuing agent, with Crédit Agricole Corporate and Investment Bank and Natixis Corporate & Investment Banking as dealers. The bond was issued on Euroclear’s DLT platform, D-FMI, and settled through Banque de France (BdF) via its DLT solution, DL3S. The interoperability solution was co-designed by BdF and Euroclear, highlighting the importance of co-creation between private and public entities for successful adoption. This collaboration marks a significant step towards standardisation and scalability in the digital assets space.

Sebastien Danloy, Chief Business Officer at Euroclear: “We are excited to support the French financial market in adopting digital asset securities. It is crucial for participants, including financial market infrastructures and central banks to collaborate in bridging the gap between traditional finance and digital asset securities. By leveraging our expertise in settlement and post-trade services, we strive to develop efficient, resilient and interoperable digital infrastructures. Our commitment to innovation will continue to open new business opportunities and connect issuers and investors worldwide.”

Emmanuelle Assouan, Director General Financial Stability and Operations at Banque de France: “Choosing Banque de France’s full DLT interoperability solution for settling the cash leg of this issuance stresses the importance of tokenised Central Bank Money for the development of the tokenisation of finance. The operation, performed under CSDR, allowed Banque de France to enrich its connectivity solutions by setting-up a new interoperability link between the 2 DLT, on the top of HTLC and SWIFT protocols.”

Nathalie Tubiana, Chief Financial and Sustainable Policy Officer at Caisse des Dépôts Group: “Financial and digital sovereignty is one of the 3 strategic axes for the Caisse des Dépôts Group, with those around ecological transition and social and territorial cohesion. So we wanted to participate in this digital issuance, a pioneering operation on the capital market in France, to support players in the sector working around Euroclear and the Banque de France. This program demonstrates Caisse des Dépôts’ capacity for adaptation and innovation, which its teams have always demonstrated.”

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.