The settlement service is far from the first to issue digitalized securities, but its magnitude makes it a significant step. Euroclear has created a digital securities issuance business and paid a digital World Bank bond for 100 million euros ($106 million). According to the company, this is the first stage in its digital infrastructure strategy.
The three-year bond, known as a digitally native note, was issued by the World Bank’s lending arm, the International Bank for Reconstruction and Development, to raise funding for long-term development. It was completed on October 23 and placed on the Luxembourg Stock Exchange.
Euroclear’s digital infrastructure is linked to its traditional platform for secondary activities and complies with the Central Securities Depositories Regulation of the European Union. It employs R3’s Corda blockchain technology. Anshula Kant, managing director and chief financial officer of the World Bank Group, stated, “A transition to digitisation is underway in the capital markets.” Euroclear’s new solution allows issuers and investors to take another step forward in this process.”
The issuance was resolved in accordance with English law. Citi Issuer Services served as issuing and paying agency, while TD Securities served as issuer agent. Euroclear, one of the world’s major securities settlement firms, is following in the footsteps of its predecessors. In 2018, the World Bank released the world’s first digital bond. As of June, the Tel Aviv Stock Exchange has completed a proof-of-concept on tokenizing bonds. The DTCC announced the acquisition of digital infrastructure developer Securrency on Oct. 19, expecting to “unlock the value of digital assets in a leading position.”