In a landmark event, the International Bank for Reconstruction and Development (IBRD), part of the World Bank, issued the first Digitally Native Note (DNN) under English law via Euroclear's Digital Financial Market Infrastructure (D-FMI). The €100 million DNN, listed on the Luxembourg Stock Exchange, is part of a broader initiative to establish a sustainable digital infrastructure for DNN issuance. The issuance was facilitated by Citi's Issuer Services acting as the issuing and paying agent, while TD (TSX:TD) Securities served as the dealer.
The technological foundation of this issuance was Corda, R3’s digital ledger technology (DLT) platform. Euroclear's D-FMI links to its traditional settlement platform for secondary market operations on the DNN, marking a significant milestone in the digital transformation of global financial markets.
This initiative is part of a multi-year program that involves key stakeholders including Citi, Euroclear, TD Securities and IBRD. The goal is to provide a scalable model that integrates digitization benefits with bond accessibility and liquidity. This will pave the way for a fully digital transaction lifecycle in debt capital markets.
Andrew Mulley, EMEA Head of Citi's Issuer Services, and Ryan Marsh, Global Head of Blockchain, Digital Assets & Innovation for Citi Securities Services, highlighted the transformative potential of this inaugural digital issuance. Lieve Mostrey, CEO of Euroclear Group, and Jorge Familiar, Vice President and Treasurer at World Bank, also underscored this innovation as a crucial step forward.
In line with its strategic approach to innovation, Citi continues to develop digital asset solutions using shared technology capabilities. These enhancements span across Citi's products and services including digital money, trade securities, custody, asset servicing and collateral mobility. Currently, Citi Securities Services holds approximately US $28 trillion of assets under custody, administration and trust, offering cross-border support with local market expertise, innovative post-trade technologies and a wide range of securities services solutions.
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