Citi as World Bank's first issuing and paying agent on Euroclear's D-FMI DLT platform

Banking & Financial Services
Webp mostrey
Lieve Mostrey | Euroclear

Citi's Issuer Services division, a part of Securities Service, has acted as the Issuing and Paying Agent for the first-ever Digitally Native Note (DNN) issuance under English Law on Euroclear's Digital Financial Market Infrastructure (D-FMI) distributed ledger technology (DLT) platform. The World Bank - International Bank for Reconstruction and Development (IBRD) issued the inaugural DNN, valued at EUR 100 million and with a three-year term. This development marks a significant step towards fully digital bond transactions and showcases the integration of blockchain technology with traditional capital markets to enhance efficiency and growth opportunities.

Citi expressed its commitment to developing digital asset solutions, stating, "Citi continues to develop digital asset solutions, in line with its goals and risk appetite, using a unified set of shared technology capabilities and a common strategic approach."

The DNN is now available for trading on the Luxembourg Stock Exchange, further highlighting the progress towards digital bond transactions. This achievement is the result of a multi-year collaboration between Citi, Euroclear, and IBRD. The collaboration demonstrates the potential of the international issuance model to transform the debt capital markets. Andrew Mulley, EMEA Head of Citi's Issuer Services, emphasized the value of the international issuance model and its ability to improve transparency, efficiency, liquidity, and client experience.

According to a press release by Citi, Lieve Mostrey, Euroclear Group CEO, said, "Our collaborations with Citi, TD Securities and the IBRD have been instrumental in the launch of this major innovation in asset issuance. The integration of our distributed ledger technology capabilities marks a significant milestone in the digital transformation of our global financial markets. Today's announcement represents a momentous stride towards realising the boundless potential of digital assets, underpinned by our shared commitment to pioneering innovation and delivering transformative solutions for investors and issuers on a global scale."

The collaboration between Citi, Euroclear, and IBRD highlights the ongoing efforts to leverage blockchain technology and digital solutions to revolutionize the financial industry. This development opens up new possibilities for efficient and secure transactions in the capital markets.