The Luxembourg Stock Exchange (LuxSE) has listed the “first digital native security” or “digital native note (DNN)” to be admitted to trade in the European Union.
As was reported earlier today, R3 worked with the World Bank to issue the security on its Corda blockchain.
The €100 million DNN is using Euroclear’s new Digital Securities Issuance (D-SI) service and is admitted to LuxSE’s EU-regulated market.
The D-SI service is part of Euroclear’s new Digital Financial Market Infrastructure (DFMI), a DLT-based technological component of Euroclear Bank’s securities settlement system. DFMI is directly connected to the legacy segment of Euroclear’s securities settlement system for secondary market operations.
LuxSE has described the digital security listing as a natural step forward and emblematic of its support of digital securities in general.
In 2022, LuxSE became the very first exchange in the EU to admit digital securities issued by Societe Generale on its Securities Official List, LuxSE SOL. This development was followed by the admission of three digital securities issued by the European Investment Bank, including the world’s first digital Climate Awareness Bond, which was admitted on LuxSE in June this year.
Arnaud Delestienne, Director of International Capital Markets and Member of the Executive Committee at LuxSE, said the digital bond and D-FMI platform is a firm step towards digital securities markets. Delestienne said they “firmly believe” in the potential of distributed ledger technology to improve capital markets.
LuxSE predicted that the adoption of DLT will significantly enhance the global debt capital markets and benefit market participants by reducing costs and speeding up the process while improving transparency.