News - 21.11.2024

Luxembourg law-governed digital bond issued under ECB trials for DLT settlement

  • FinTech

As part of the Eurosystem’s exploratory work on new technologies for wholesale central bank money settlement, the European Investment Bank issued a digital bond for 100 million euros on November 20, 2024. This Luxembourg law-governed issuance was conducted using the HSBC Orion tokenization platform, developed and operated by HSBC Continental Europe (Luxembourg).

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Specifically, investors paid for the bonds in euros, while the proceeds were transferred to the EIB in wholesale central bank digital currency on the Banque de France’s DL3S platform, demonstrating interoperability between DL3S and HSBC Orion. This is the second time the EIB has used HSBC Orion’s private blockchain technology. This new issuance once again underlines the role of Luxembourg’s pioneering blockchain legislation as an enabler for digital asset and capital markets innovation.