Luxembourg stock exchange lists EU’s first DLT-based security

The move is part of LuxSE’s broader strategy to promote the use of DLT in international capital markets. Earlier this year, LuxSE became the first exchange in the EU to list digital securities issued by Societe Generale and the European Investment Bank, including the world’s first digital Climate Awareness Bond.

In a groundbreaking move, the Luxembourg Stock Exchange (LuxSE) today announced the listing of the European Union’s first financial instrument issued on Distributed Ledger Technology (DLT).

The EUR 100 million Digital Native Note (DNN), issued by the World Bank, marks a pivotal moment in the adoption of blockchain technology in EU-regulated financial markets.

“This new digital bond issuance and the development of Euroclear’s D-FMI platform represent a firm step towards the all-important digitalization of capital markets, which the Luxembourg Stock Exchange is actively contributing to,” said Arnaud Delestienne, Director of International Capital Markets and Member of the Executive Committee at LuxSE. “We firmly believe in the transformative power of DLT to enhance international capital markets and are excited to reaffirm our commitment to our industry’s digital future with the listing of the first tradable digitally native security in the EU.”

A Leap Forward in Financial Market Infrastructure

The DNN was issued using Euroclear’s new Digital Securities Issuance (D-SI) service, a component of Euroclear’s Digital Financial Market Infrastructure (D-FMI). The D-FMI is a DLT-based platform that integrates with Euroclear’s existing securities settlement system, providing a seamless transition for investors trading digitally native securities. This marks a significant stride towards achieving the goals set out in the European Commission’s Digital Finance Strategy, introduced in September 2020.

The move is part of LuxSE’s broader strategy to promote the use of DLT in international capital markets. Earlier this year, LuxSE became the first exchange in the EU to list digital securities issued by Societe Generale and the European Investment Bank, including the world’s first digital Climate Awareness Bond.

The adoption of DLT is not just a technological advancement; it’s a paradigm shift that could revolutionize how global debt capital markets operate. By leveraging blockchain technology, the market could see streamlined operations, reduced costs, and increased transparency and security.

The DNN listing exemplifies the accelerating trend of market digitalization and underscores the Luxembourg Stock Exchange’s role as a front-runner in adopting digitally native securities. As the EU’s financial markets continue to evolve, DLT is poised to play an increasingly critical role in shaping their future, offering both issuers and investors a new landscape of possibilities.

Financefeeds.com