SIX Digital Exchange (SDX) is set to hit the 1 billion Swiss Francs (CHF) milestone of digital asset issuances with the upcoming settlement of the CHF 200 million bond by the World Bank priced on 15 May.
The participation of key issuers, including The World Bank, UBS AG, the City of Lugano, the Canton of Zurich, the Canton of Basel City, the City of St. Gallen, and SIX Group AG, has been instrumental in advancing the Swiss Financial Centre’s digital transformation journey, said the company.
SDX has been at the forefront of the institutional adoption of digital assets in partnership with customers and regulators. Several issuances have been part of SNB’s Project Helvetia Phase III, enabling settlements in Swiss Franc (CHF) wholesale Central Bank Digital Currency (wCBDC).
“Growing acceptance and adoption of digital assets”
David Newns, Head of the SIX Digital Exchange, said: “Breaking through the 1 billion barrier underscores the growing acceptance and adoption of digital assets within the global financial landscape and the world leading position that the Swiss Financial Centre has taken in this critical area of innovation in capital markets.
“Our objective has always been to seamlessly connect digital and traditional infrastructure, mitigating market fragmentation and facilitating the efficient transition to digital assets. The digital bonds issued to date remain open to the entire investor base as they are listed, traded and settled both on a regulated digital exchange and traditional market infrastructures.”
The success of digital bond issuances further solidifies SDX’s position as a pioneering force in the digital asset space. With a focus on regulatory compliance, security, and efficiency, SDX continues to set new standards for digital finance, revolutionizing the way investors access and interact with financial markets.
World Bank’s CHF 200 million bond settled with wCBDC
The abovementioned CHF 200 million bond issuance by the World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) will be settled using Swiss Franc wholesale Central Bank Digital Currency (wCBDC) provided by the Swiss National Bank (SNB).
It is a 7-year CHF 200 million digital bond, the largest World Bank CHF bond issuance since 2009, and will support the financing of World Bank’s sustainable development activities.
The coupon and redemption payments will be made using tokenized CHF on the SDX. The SDX connects to conventional settlement systems such as Euroclear and Clearstream, via SIX SIS, allowing investors to hold the digital bond through their traditional custodians. The transaction follows the World Bank’s recent digital issuance on Euroclear’s Digital Financial Market Infrastructure (D-FMI) and builds upon its partnerships with core market infrastructure providers to scale digitalization efforts.
The securities are governed by Swiss law. The bond was placed mainly in Switzerland, with banks, bank treasuries, and corporates representing the majority share of allocations at 60%, followed by asset managers, insurance companies, and pension funds at 39%. The remainder was placed with central banks and official institutions. Commerzbank was the sole lead manager and is also the paying and issuer agent for this transaction.
