Euroclear Launches Digital Securities Issuance Service, Settles World Bank Bond

Euroclear, a leading securities settlement house, has recently introduced a digital securities issuance service and successfully settled a 100-million-euro ($106 million) digital World Bank bond. This marks the initial phase of Euroclear’s digital infrastructure strategy, as the Brussels-based settlement house embraces the digital transformation in the capital markets. The bond, issued by the International Bank for Reconstruction and Development (IBRD), a World Bank lending arm, aims to raise funds for sustainable development and has been listed on the Luxembourg Stock Exchange. The issuance was completed on October 23, and Euroclear’s digital infrastructure, which operates on R3’s Corda blockchain technology, connects seamlessly with its traditional platform for secondary operations while aligning with the European Union’s Central Securities Depositories Regulation.

A Transition to Digitization in Capital Markets

Euroclear’s foray into digital securities issuance reflects the emerging trend in the capital markets towards digitization. Anshula Kant, Managing Director and Chief Financial Officer of the World Bank Group, expressed support for this development, stating, “A transition to digitization is underway in the capital markets. Euroclear’s new service offers issuers and investors an opportunity to take another step along this journey.”

The successful settlement of the World Bank bond under English law involved the collaboration of various entities. Citi Issuer Services acted as the issuing and paying agent, while TD Securities took on the role of the issuer agent.

Embracing the Digital Transformation

Euroclear’s digital securities issuance service follows in the footsteps of several predecessors in the financial industry. Notably, the World Bank issued the world’s first digital bond in 2018. This year alone, digitalized bonds have been issued in Hong Kong dollars and Chinese yuan in Hong Kong. In June, the Luxembourg Stock Exchange registered its first digital bond denominated in Swedish krona. Additionally, the Tel Aviv Stock Exchange completed a proof-of-concept for tokenizing bonds in the same month. Meanwhile, DTCC, another prominent settlement house, recently made headlines with its acquisition of digital infrastructure developer Securrency, positioning itself as a key player in unlocking the value of digital assets.

Digital Securities in the Global Market

The global market is witnessing a significant shift towards the adoption of digital securities, with market participants increasingly embracing the benefits of blockchain technology and digitized assets. The introduction of Euroclear’s digital securities issuance service further accelerates this transition and provides issuers and investors with enhanced accessibility, efficiency, and transparency in the issuance and settlement processes.

Editor’s Notes

This recent development from Euroclear reflects the growing momentum behind digitization and blockchain technology in the financial industry. As more institutions and settlement houses embrace the digital transformation, it is clear that the capital markets are undergoing a fundamental shift towards a more digitized and efficient future. To stay updated with the latest news and trends in the crypto and blockchain space, visit Uber Crypto News today!