Today a legal staffer at Euroclear confirmed that it is working on a DLT-based bond issuance and settlement solution that could be launched this year.
Euroclear’s Bart Garré told Coindesk that it is “finalizing the first minimum viable product of a DLT platform”. Two other newsworthy points are the solution is not particularly part of the EU DLT Pilot Regime which relaxes some regulatory requirements. And the DLT platform will link to legacy bond markets to ensure liquidity.
The liquidity point has already been addressed elsewhere. When UBS issued its CHF 375 million ($410m) blockchain bond via SIX Digital Exchange last year, it did the same. In that case, the bond was native to the SDX blockchain and held in the SDX central securities depository (CSD) but assets could be locked and mirrored in the conventional SIX CSD. This allows some investors to buy tokens, and those who are not keen can still invest conventionally.
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