IBRD Launches First Digitally Native Note via Euroclear’s Infrastructure

Introduction to the Digitally Native Note

The International Bank for Reconstruction and Development (IBRD), part of the World Bank, has made a significant breakthrough by issuing the first Digitally Native Note (DNN) under English law. This €100 million DNN is listed on the Luxembourg Stock Exchange and represents a critical step towards establishing a sustainable digital infrastructure for future DNN issuances.

Technological Advancements in Digital Issuance

The issuance was executed through Euroclear's Digital Financial Market Infrastructure (D-FMI), utilizing Corda, R3’s digital ledger technology (DLT) platform. This integration with Euroclear's traditional settlement platform for secondary market operations signifies a major advancement in the digital transformation of global financial markets.

Collaborative Efforts and Objectives

This initiative forms part of a comprehensive multi-year program involving key stakeholders such as Citi, Euroclear, TD Securities, and IBRD. The initiative aims to develop a scalable model that combines the advantages of digitization with enhanced bond accessibility and liquidity. This endeavor is set to facilitate a fully digital transaction lifecycle within debt capital markets.

Strategic Innovation by Citi

Citi plays a pivotal role in this digital innovation, providing issuer services as the issuing and paying agent. The bank continues to expand its digital asset solutions, focusing on shared technology capabilities that enhance its offerings. These include advancements in digital money, trade securities, custody, asset servicing, and collateral mobility.

Conclusion

The launch of the first Digitally Native Note by IBRD marks a transformative milestone in the digitalization of financial markets, setting the stage for further innovations in the industry. With strategic partnerships and technological advancements, the future of digital financial transactions looks promising.