Brussels-based Euroclear will launch a blockchain solution to enable the issuance and settlement of Digitally Native Notes (DNN) — tokenized securities.
Euroclear, the world’s largest settlement and clearing company, has announced the launch of its Digital Securities Issuance (D-SI) service, a distributed ledger technology (DLT) solution for issuing Digitally Native Notes (DNN), digital international securities.
The technology has been tested with the participation of the World Bank. Thus, the first DNN was issued by the International Bank for Reconstruction and Development (IBRD) to raise €100 million to support sustainable development initiatives. The tokenized asset was listed on the Luxembourg Stock Exchange. Citi acted as the issuing and paying agent and TD Securities served as the dealer.
The D-SI operates under Euroclear’s traditional secondary market platform. The DNN provides investors with full access to trading platforms and liquidity management tools. One of the key benefits of the new service is full compliance with European legislation under the Central Securities Depositories Regulation (CSDR).
According to Lieve Mostrey, CEO of Euroclear, the company is committed to providing investors with technology solutions that promote growth and stability for all market participants. She also noted that the integration of the DLT solution is an important step in developing the digital capabilities of Euroclear’s ecosystem as the company seeks to fully digitalize its financial markets infrastructure.
“A transition to digitization is underway in the capital markets,” said Anshula Kant, Managing Director and CFO of the World Bank. In her opinion, Euroclear’s new service will make the transformation for issuers and investors more accessible, simple, and, most importantly, fully legal.
The potential of tokenization technology for the bond market was praised by the Hong Kong Monetary Authority (HKMA). In Spain, the first tokenized shares were issued this summer, and the largest Swiss bank is testing the possibility of investment fund tokenization.
