Citi has made history by acting as the first Issuing and Paying Agent for the World Bank’s inaugural Digitally Native Note (DNN) issuance via Euroclear's innovative Digital Financial Market Infrastructure (D-FMI). This EUR 100 million issuance, which has a maturity of three years, was completed using distributed ledger technology (DLT) and is listed on the Luxembourg Stock Exchange.
“This initiative perfectly aligns to our mission of connecting our clients into new digital networks that enable them to create, or invest in, digital assets to unlock new efficiency, value and operating models,” said Ryan Marsh, Global Head of Blockchain, Digital Assets & Innovation for Citi Securities Services. The issuance represents a leap forward in the creation and settlement of bonds, advancing towards a fully digital transaction lifecycle with a T0 settlement basis.
The collaboration among stakeholders such as Citi, Euroclear, and the International Bank for Reconstruction and Development (IBRD) sheds light on the evolution of the bond market. “We are delighted to work with our partners at Euroclear and IBRD on this inaugural digital issuance,” commented Andrew Mulley, EMEA Head of Citi's Issuer Services. “It demonstrates the continued value of the international issuance model and its potential to transform the way in which the debt capital markets operate.”
This significant step is the culmination of a multi-year program aimed at establishing a robust digital infrastructure for DNNs, which is expected to enhance efficiency and create growth opportunities for debt capital market participants as the D-FMI platform matures.
Lieve Mostrey, Euroclear Group CEO, highlighted the partnership between the involved parties. “Our collaborations with Citi, TD Securities and the IBRD have been instrumental in the launch of this major innovation in asset issuance,” she stated. “The integration of our distributed ledger technology capabilities marks a significant milestone in the digital transformation of our global financial markets.”
The evolution of digital assets in capital markets can be traced back to earlier blockchain initiatives. “Since the World Bank’s first blockchain bond 'bond-i,' debt capital markets have been moving towards digitization, step-by-step,” said Jorge Familiar, Vice President and Treasurer of the World Bank. “We are pleased to announce that today we contributed to this ongoing development through issuing the inaugural digital native note on Euroclear’s D-FMI platform.”
As Citi continues to invest in digital asset solutions, the focus remains on creating innovative financial products that include digital money, trade, securities, custody, asset servicing, and collateral mobility. “We expect to continue participating in a series of digital bond initiatives,” Marsh added, signaling that this is just the beginning of digitization in the financial sector.
Citi has established itself as a reliable partner for institutions with cross-border financial needs, with a vast network and industry experience that spans more than 60 markets. The bank currently manages approximately $28 trillion in assets under custody, administration, and trust, offering post-trade technologies and securities services tailored to clients' requirements.