Citi issues R3’s Corda-powered digital bond on Euroclear

Rick Steves

“This issuance is not a sandbox or proof of concept project—it is a live market issuance that shows the role DLT can play in transforming capital markets.”

R3’s Corda platform powered the first live digital bond issuance on Euroclear’s International Central Securities Depository (ICSD).

This isn’t a mere experiment or proof of concept; it’s a live market issuance that underscores the transformative power of distributed ledger technology (DLT) in reshaping the financial landscape.

Digital bond issuance under UK law

The bond, a supranational, sovereign, and agency (SSA) security, was issued by the World Bank. Acting as the issuer agent was Citi, an investor in R3, while TD Bank served as the dealer. The deal transpired under UK law and concluded successfully on October 23rd.

The issuance marks a significant advancement in Euroclear’s Distributed Financial Market Infrastructure (DFMI) initiative, which aims to leverage the capabilities of R3’s Corda platform to enhance transparency, speed, and the overall resilience of the bond issuance process.

“This issuance is not a sandbox or proof of concept project—it is a live market issuance that shows the role DLT can play in transforming capital markets,” stated David E. Rutter, CEO and Founder of R3.

Corda supports entire lifecycle of a bond

The deployment of Corda’s unique distributed architecture in this issuance demonstrated the platform’s ability to support the entire lifecycle of a bond—from issuance to primary distribution—under the existing legal framework that governs ICSDs. Corda has been designed from the ground up for regulated markets, ensuring features like scalability, security, and governance are baked into the system.

Antonio Queiroz, Chief Digital Officer at Euroclear, emphasized the broader implications: “Through working with our extensive global ecosystem, we have achieved a major milestone in both our DFMI initiative and the evolution of securities trading as a whole.” Euroclear, renowned for its high-quality settlement services, seeks to drive digital transformation across the industry and improve both transparency and efficiency in capital markets.

The issuance adds to a growing list of regulated institutions globally that are harnessing Corda to digitize capital markets and push the boundaries of financial innovation. It also marks a moment of synergy between technology and financial market infrastructures like Euroclear, which play a pivotal role in the global financial ecosystem.

In an era where financial markets are increasingly going digital, this live issuance acts as a tangible step toward realizing a more efficient, transparent, and secure global financial system.

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