Euroclear Financial News

Belgium-based bank Euroclear has launched the first digital native security on the Luxembourg Stock Exchange together with the World Bank.

Euroclear has launched a digital securities issuance service and settled a 100-million-euro ($106 million) digital World Bank bond. This is the first step in the Brussels-based settlement house’s digital infrastructure strategy, it said.

RBI) has been making informal inquiries with select bond market participants about the impact of allowing settlement of domestic sovereign debt on the Euroclear platform, a move that experts believe would help expand the overseas investor base for local debt and eventually lower borrowing costs through inclusion of these bonds in globally tracked indices. «They (the RBI) are not averse to the process of settlement of Indian bonds on the Euroclear platform and have been taking feedback from the market,» a source aware of the development said. «Such discussions happened earlier too — there were some concerns over a parallel yield curve developing, although the market has developed more now and is much deeper.» In most cases, bonds listed on an international index are settled on global platforms such as those offered by the Belgium-based Euroclear. Although Euroclear settlements are not mandatory for inclusion of Indian sovereign debt on global bond indices such as those offered by JP Morgan and Bloomberg Barclays, the presence of a settlement mechanism on a global platform is seen to help push the cause for inclusion.'Tax Relief Unlikely' A Reuters report, citing Bank of America Securities, said last month that index inclusion could lead to inflows of $6 to $12 billion over a period of time into India, thereby helping lower yields on sovereign debt.

Clearing house Euroclear announced an investment in an international consortium of financial institutions seeking to build a payment and settlement system using tokenised assets and Distributed Ledger Technology.

On Monday, Euroclear, a securities clearing firm that claims it has over 37.6 trillion euros in assets under custody, announced an investment into Fnality, a consortium of financial institutions focused on the regulated adoption of tokenized assets and marketplaces, for an undisclosed amount. Meanwhile, Euroclear is also focusing on developing its distributed ledger technology, or DLT, to settle digital securities against digital cash through the partnership. 

Clearing house Euroclear announced an investment in an international consortium of financial institutions seeking to build a payment and settlement system using tokenized assets and Distributed Ledger Technology.

The depository says that recent experiments conducted with the Banque de France on the settlement of Government bonds using a central-bank backed digital currency demonstrated that blockchain technology is suitable to manage post-trade market operations in CBDC.Fnality last month moved one step closer to launch after two major European banks successfully conducted a proof of concept showcasing the benefits of distributed ledger technology (DLT) in offering near-instant settlement in capital markets and payments.Rhomaios Ram, CEO Fnality International says: “As we progress from testing to real-world implementation, welcoming Euroclear Group as an investor into the Fnality International consortium will significantly enhance the diversification of Fnality’s network and expand our industry footprint, especially around Financial Market Infrastructure.