Bank

when

Polygon

Banca

Slovenia has issued the first digital sovereign bond in the European Union. The bond was issued and placed by BNP Paribas. It had a nominal size of 30 million euros ($32.5 million) with a 3.65% coupon and maturity date of Nov. 25, according to the Slovenian Finance Ministry.&nbsp;
BNP Paribas <a href="https://www.gov.si/en/news/2024-07-26-the-republic-of-slovenia-issues-its-inaugural-digital-bond/" target="_blank" rel="noopener nofollow">used</a> its Neobonds platform for the July 25 bond issue. Neobonds is a distributed ledger technology (DLT) tool that uses Digital Asset’s Daml language on the Canton blockchain. Settlement was carried out on the Banque de France’s DL3S interoperability system. 
<h2 id="bnp-paribas-has-two-tokenizing-platforms">BNP Paribas has two tokenizing platforms</h2>
The bond issue is part of the European Central Bank’s (ECB) wholesale central bank money settlement experimentation program. That program <a href="https://cointelegraph.com/news/ecb-expands-dlt-testing-new-phase">announced the beginning of</a> its second phase in June. Three interoperability solutions are included in the program. 
Related: <a href="https://cointelegraph.com/news/banque-france-hkma-cbdc-tokenization-collaboration">Banque de France, Hong Kong Monetary Authority explore CBDC, tokenization</a>
Besides France’s DL3S, Deutsche Bundesbank’s Trigger Solution and Banca d’Italia’s TIPS Hash-link are being trialed. BNP Paribas CIB chief operating officer Philippe Maillard <a href="https://group.bnpparibas/en/press-release/first-eurozone-sovereign-digital-bond-issuance-for-the-republic-of-slovenia-issued-and-placed-by-bnp-paribas" target="_blank" rel="noopener nofollow">said</a> in a statement:
<blockquote data-ct-non-breakable="true">
 “This transaction was made possible by leveraging the strength of BNP Paribas' integrated and diversified model across business lines, including Global Markets, ALM Treasury, Securities Services, FIC Official Institutions Coverage and BNP Paribas Asset Management.” 
</blockquote>
Besides Neobonds, BNP Paribas operates the AssetFoundry, a tokenization platform based on Ethereum. BNP Paribas <a href="https://cointelegraph.com/news/microsoft-goldman-sachs-others-partner-in-new-blockchain-network">was one of the original</a> participants in the Canton Network, along with such institutions as Cboe Global Markets, Paxos, Microsoft, Goldman Sachs and Deloitte, when the blockchain debuted in 2023. 
<h3 id="more-digital-bonds-issued-all-the-time">More digital bonds issued all the time</h3>
Digital bond issues are gradually joining the financial mainstream. The World Bank <a href="https://cointelegraph.com/news/world-bank-mandates-commonwealth-bank-of-australia-to-issue-bond-using-blockchain-tech">issued the first bond on</a> a blockchain in 2019. The People’s Bank of China <a href="https://cointelegraph.com/news/china-issuing-bonds-on-blockchain-is-a-sign-of-whats-to-come">issued a bond onchain</a> later the same year. 
Hong Kong <a href="https://cointelegraph.com/news/hong-kong-issues-hk-800m-in-tokenized-green-bonds">issued an 800-million Hong Kong</a> dollar (roughly $100 million) tokenized green bond in 2023. The island nation of Palau <a href="https://cointelegraph.com/news/palau-soramitsu-blockchain-bond-platform">partnered with Japanese blockchain</a> company Soramitsu on a government bond platform earlier this month.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/ffe72b6c-ceb3-46ad-86c2-53f9462f79d6.png" alt="Slovenia launches EU's first digital sovereign bond via BNP Paribas" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/cryptoeaglenews/status/1817927316971847897" target="_blank" rel="noopener nofollow">Crypto Eagle</a>
 </figcaption>
</figure>
Austria carried out a simulated digital bond <a href="https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews240514.en.html#:~:text=First%20DLT%2Drelated%20experiment%20for%20settlement%20in%20central%20bank%20money%20successfully%20completed,-14%20May%202024&amp;text=Yesterday%2C%20the%20Eurosystem%20successfully%20completed,transactions%20in%20central%20bank%20money." target="_blank" rel="noopener nofollow">settlement</a> on a secondary market in May during the first part of the ECB experimentation. Italy’s state-owned Cassa Depositi e Prestiti <a href="https://cointelegraph.com/news/italian-bank-27-million-dollar-digital-bond-transfer-polygon">issued a digital bond</a> worth $27.2 million on Polygon using the TIPS Hash-link solution. 
Magazine: <a href="https://cointelegraph.com/magazine/digital-yuan-adoption-payments-regulation/">How the digital yuan could change the world… for better or worse</a>

Slovenia launches EU's first digital sovereign bond via BNP Paribas

Innehållsförteckning

Cointelegraph

Andra artiklar publicerade 29 juli 2024

RollBlock divides gains, leaving Doge and Shiba holders second-guessing

Bitcoin Marks 100 Days Post-Halving

Analysts Bullish on Mantle: Top Altcoin to Buy in 2024

Bitcoin Cash (BCH) Price Eyes To Hit $500 As BTC Price Nears 70K?

Harnessing Bitcoin’s ‘Greed’ Phase: Insightful Strategies for Your Next Steps

Exploration of the CET Tokenomics and CoinEx Ecosystem Development

Prenumerera på vårt nyhetsbrev och få kryptouppdateringar varje dag!