The Belgian firm launched the new settlement service, a new Digital Securities Issuance (D-SI) mechanism, with the first transaction with the World Bank.
Financial services firm Euroclear has come up with a Digital Securities Issuance service that leverages digital ledger technology (DLT). The Belgium-based organization has a Digital Financial Market Infrastructure (D-FMI) strategy.
The service is part of the same strategy and enables all operations of Digitally Native Notes (DNN) using DLT. The operations include settlements, distribution, and issuance of the DNN securities. The firm, through a press release, announced the launch.
In the meantime, the first settlement of the new service was that of a World Bank bond. The international bank raised EUR 100 million in lieu of issuing the Digitally Native Nodes. Euroclear acted as the Central Securities Depository for the bond. Meanwhile, Euroclear also has a D-FMI platform for the service.
At the same time, other participants in the inaugural World Bank bond settlement commented on the new service. Senior World Bank Group, Citi, and TD Securities officials appreciated Euroclear’s initiative. Anshula Kant, the Managing Director of the World Bank Group, termed their bond as a ‘blockchain bond.’ Other financial services firms may also take the cue from the World Bank and start using DLT for blockchain bonds.
Meanwhile, the D-FMI platform also enables investors to have access to liquidity management facilities and trading avenues. It does so by being connected to Euroclear’s traditional settlement platform. The firm aims to take forward its strategy by helping expand digital infrastructure for financial markets.
“We strive to deliver technology solutions that empower investors, foster market transparency and support the growth and stability of all market participants. The integration of DLT in asset issuance is a critical step forward in the evolution of our ecosystem’s digital capabilities, as we continue to deliver on our goal of becoming a fully digital and data enabled Financial Market Infrastructure,” said Euroclear’s CEO Lieve Mostrey.