Bank

2024

World

Swiss Franc

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has announced a CHF Digital bond. The bond will settled using the Swiss Franc through a distributed ledger technology.&nbsp;
The digital bond will be the first CHF digital bond issued by an international issuer with settlements in Swiss Francs wholesale CBDC (wCBDC). The CDBC will be offered by the&nbsp;<a class="editor-rtfLink" href="https://www.snb.ch/en/" target="_blank" rel="noopener noreferrer nofollow">Swiss National Bank (SNB)</a>. The digital bond has a 7-year tenure worth CHF 200 million, about $219 million. It represents the largest-ever CHF bond issuance since 2009.
Also Read: <a href="https://www.cryptopolitan.com/world-bank-debuts-first-digital-native-note-dnn-on-luxembourg-stock-exchange/" rel="noopener noreferrer nofollow">Bank Debuts First Digital Native Note (DNN) on Luxembourg Stock Exchange</a>
<h2 id="world-bank-partners-with-swiss-national-bank-and-six-digital-exchange">World Bank Partners With Swiss National Bank and SIX Digital Exchange</h2>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 We are proud to announce that The <a href="https://twitter.com/WorldBank?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">@WorldBank</a> has issued a <a href="https://twitter.com/hashtag/digitalbond?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#digitalbond</a> on <a href="https://twitter.com/hashtag/SDX?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#SDX</a> as its first international issuer. The bond will settle using Swiss Franc <a href="https://twitter.com/hashtag/wCBDC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#wCBDC</a> provided by the <a href="https://twitter.com/SNB_BNS?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">@SNB_BNS</a>. The <a href="https://twitter.com/hashtag/bond?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#bond</a> is listed on both the <a href="https://twitter.com/hashtag/SIXdigitalexchange?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#SIXdigitalexchange</a> and the SIX Swiss Exchange. <a href="https://twitter.com/commerzbank?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">@commerzbank</a>… <a href="https://t.co/TZ0fQe442q" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/TZ0fQe442q</a>
 — SIX Digital Exchange (@SDX_global) <a href="https://twitter.com/SDX_global/status/1791022906677309625?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">May 16, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The bank has established relationships with SNB and SIX Digital Exchange (SDX). The collaboration will provide top-notch services in capital markets using distributed ledger technology (DLT). The partnership will enhance the use of DLT by accepting coupon redemption payments in tokenized CHF. The payments will be made through SDX, configured to connect to existing financial systems.
<h2 id="vice-president-and-treasurer-of-world-bank-commented-on-the-progress">Vice President and Treasurer of World Bank Commented on the Progress</h2>
Leaders championing this revolution commented on the partnerships between the three entities. Starting with Jorge Familiar, Vice President and Treasurer of the World Bank.
<blockquote>
 “We are grateful for the opportunity to issue the first CHF digital bond as an international issuer. This achievement marks another significant step in the World Bank’s commitment to increasing capital markets’ efficiency through digitalization in partnership with central banks and central securities depositories. It builds on our previous accomplishments with bond-i and the issuance of digitally native notes last October.”
</blockquote>
Also Read: <a href="https://www.cryptopolitan.com/world-bank-exposes-key-driver-high-inflation/" rel="noopener noreferrer nofollow">Bank Exposes Key Driver of High Inflation</a>
Head of SIX Digital Exchange, David Newns, doubled down on the importance of tokenized central bank money. He said adopting wholesale transaction settlements is critical for blockchain adoption within capital markets infrastructure.
Marie-Claire Ouziel, Global Head of Bonds, Commerzbank, closed by saying,
<blockquote>
 “Many congratulations to the World Bank team on today’s CHF outing, breaking a multiyear absence from this market. This digital bond issuance marks another triumph for the World Bank, cementing its position as an avant-garde issuer embracing innovative technologies. The World Bank demonstrated its global investor appeal while transforming the way in which debt capital markets move forward. I am proud of the partnership among World Bank, SNB, SDX and Commerzbank that lead to this groundbreaking success.” 
</blockquote>
<h2 id="world-bank-to-advance-digitization-in-capital-markets">World Bank to Advance Digitization in Capital Markets</h2>
The World Bank is well-sold on using distributed ledgers to improve efficiency in the capital markets. Its commitment is evidenced by its recent partnerships with DLT infrastructure providers. Considering that it issued a <a href="https://www.worldbank.org/en/news/press-release/2023/10/24/world-bank-is-the-first-issuer-on-euroclear-s-new-digital-securities-platform" rel="noopener noreferrer nofollow" target="_blank">digital bond on Euroclear’s Digital Financial Market Infrastructure</a> last year, it’s clear that it is determined to include DLT in the international financial system.
&nbsp;
Cryptopolitan reporting by Collins J. Okoth

World Bank Partners With SNB and SIX Digital Exchange to Advance Digitalization

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