Citi Partners with World Bank on Euroclear's DLT Platform for Digitally Native Note Issuance
Citi's Issuer Services, a segment of Securities Services, acted as the Issuing and Paying Agent for the first Digitally Native Note (DNN) issuance under English Law through Euroclear's Digital Financial Market Infrastructure (D-FMI) distributed ledger technology (DLT) platform. The transaction involved a EUR 100 million, 3-year DNN issued by the World Bank — International Bank for Reconstruction and Development (IBRD) and was listed on the Luxembourg Stock Exchange.
The Significance of Digitally Native Note Issuance
The issuance and settlement of DNNs on a T0 (same-day) basis mark a pivotal advancement in the bond sector, laying the groundwork for a fully digital transaction lifecycle. This initiative demonstrates a scalable model that merges the merits of digitization with existing bond accessibility and liquidity. It showcases how blockchain technology can mesh with current capital market frameworks, aiming at enhanced efficiency and growth avenues for debt capital market players as the D-FMI infrastructure evolves.
A Multi-Year Collaborative Effort
The initiative is a result of a multi-year collaborative effort among key industry stakeholders including Citi, Euroclear, and IBRD. It aims to establish a robust digital infrastructure for the issuance of DNNs. Andrew Mulley, EMEA Head of Citi's Issuer Services, highlighted the initiative's potential to revolutionize the debt capital market operations. Moreover, Ryan Marsh, Global Head of Blockchain, Digital Assets & Innovation for Citi Securities Services, echoed this sentiment, hinting at a series of digital bond initiatives in the pipeline.
Reflecting on Past and Future Digital Initiatives
Lieve Mostrey, Euroclear Group CEO, and Jorge Familiar, Vice President
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