Skip to content Skip to sidebar Skip to footer

Euroclear Launches D-SI Service, Settles €100M World Bank Bond

Euroclear, a securities settlement house, launches its Digital Securities Issuance (D-SI) service and settles a €100 million digital World Bank bond, advancing its digital capabilities.

Key Takeaways

  • Euroclear introduces Digital Securities Issuance (D-SI) service.
  • Successfully settles €100 million World Bank digital bond.
  • D-SI leverages Distributed Ledger Technology for digital securities.
  • Euroclear aims to become a fully digital Financial Market Infrastructure.

Settling World Bank Bond

Euroclear, a renowned securities settlement house, has entered the digital realm with the launch of its Digital Securities Issuance (D-SI) service. In a significant move, Euroclear also executed the settlement of a €100 million ($106 million) digital bond issued by the International Bank for Reconstruction and Development, a division of the World Bank.

The D-SI service, powered by Distributed Ledger Technology (DLT), streamlines the issuance, distribution, and settlement processes of entirely digital international securities known as Digitally Native Notes (DNN). This initiative marks the inaugural phase of Euroclear’s Digital Financial Market Infrastructure (D-FMI) strategy.

The three-year bond, classified as a digitally native note, was issued to raise funds for sustainable development and was officially listed on the Luxembourg Stock Exchange on October 23.

Euroclear’s Group CEO, Lieve Mostrey, emphasized the significance of DLT integration in asset issuance, stating, “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.”

Importantly, Euroclear’s digital infrastructure seamlessly integrates with its traditional platform for secondary activities and adheres to the Central Securities Depositories Regulation of the European Union. The bond issuance followed English law, with Citi Issuer Services serving as the issuing and paying agency and TD Securities acting as the issuer agent.

To Conclude

Euroclear’s foray into the digital securities realm with the D-SI service showcases a pivotal transition in the financial industry. The successful settlement of a substantial World Bank bond through this digital platform highlights the potential for efficiency and transparency offered by Distributed Ledger Technology. As Euroclear continues on its path to becoming a fully digital Financial Market Infrastructure, it sets a promising precedent for the future of securities issuance and settlement in the digital age. This development underscores the growing importance of blockchain and DLT in revolutionizing traditional financial processes.