Luxembourg has issued its first fully digital Treasury certificates (CTDs) worth €50 million, using HSBC’s Orion distributed ledger technology (DLT) platform.
The key innovation in the transaction is the use of a fully digital note, existing only on the blockchain.
“This issuance shows the effectiveness of our blockchain laws, which guarantee the traceability and verifiability of transactions and ensure greater trust and security for investors,” said Gilles Roth, Minister of Finance.
“The issuance of Digital Treasury Certificates (DCTs) underlines our commitment to remain at the forefront of technology when it comes to financial infrastructure.
“It illustrates the innovative strength of our financial centre. I welcome this initiative by the State Treasury, which strengthens Luxembourg’s position as a leader in the field of digital finance.”
The Luxembourg Government regards the move as a further step towards the modernisation of monetary management of the State Treasury, intended to attract interest from investors.
HSBC Europe and BNP Paribas acted as lead managers on the Luxembourg issuance and the CTDs will be displayed on the official list of securities on the Luxembourg Stock Exchange.
This movement positions Luxembourg as the second European country, following Slovenia, to issues government debt using blockchain technology.
Last July, BNP Paribas hosted the issuance of Slovenia’s first digital bond worth €30 million.
