Citi’s Issuer Services, a segment of Securities Services, recently acted as the Issuing and Paying Agent for the first-ever issuance of a Digitally Native Note (DNN) under English Law through Euroclear’s Digital Financial Market Infrastructure (D-FMI) distributed Ledger technology (DLT) platform. This groundbreaking 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 represent a significant advancement in the bond sector, paving the way for a fully digital transaction lifecycle. This initiative showcases a scalable model that combines digitization with existing bond accessibility and liquidity. It demonstrates how blockchain technology can integrate with current capital market frameworks, aiming to enhance efficiency and create growth opportunities for debt capital market players as the D-FMI infrastructure continues to evolve.

A Multi-Year Collaborative Effort

This groundbreaking initiative is the result of a multi-year collaborative effort among key industry stakeholders, including Citi, Euroclear, and IBRD. The objective is to establish a robust digital infrastructure for the issuance of DNNs. Andrew Mulley, EMEA Head of Citi’s Issuer Services, emphasized the potential of this initiative to revolutionize debt capital market operations. Ryan Marsh, Global Head of Blockchain, Digital Assets & Innovation for Citi Securities Services, echoed this sentiment, suggesting that there are more digital bond initiatives in the pipeline.

Reflecting on Past and Future Digital Initiatives

Lieve Mostrey, Euroclear Group CEO, and Jorge Familiar, Vice President and Treasurer of the World Bank, also expressed their enthusiasm for this digital venture. This initiative comes on the heels of the World Bank’s earlier blockchain bond “bond-i,” which further accelerates the digitization journey of debt capital markets. Citi remains committed to digital asset solutions, aligning with its strategic objectives and risk tolerance. The company leverages a unified technological framework to provide innovative solutions in digital money, trade, securities, custody, asset servicing, and collateral mobility.

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Citi Securities Services at a Glance

Citi Securities Services manages over US $28 trillion in assets under custody, administration, and trust. It offers a wide range of tailored securities services solutions to meet clients’ needs. With an extensive proprietary network spanning over 60 markets, it serves as a robust cross-border support for clients. This showcases Citi’s overall capability in managing a diverse range of financial products and services across nearly 160 countries and jurisdictions.

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