Earlier this week, the City of Lugano issued its second CHF 100 million ($114m) native digital bond. Settlement uses the Swiss franc wholesale CBDC as part of the Project Helvetia III central bank digital currency (CBDC) project. Helvetia is a limited time intitiatve allowing the use of the CBDC through to June 2024.
It follows a year after Lugano’s first CHF 100 million digital bond issuance. In both cases, the bond can be held in the SDX digital central securities depository (CSD) and the SIS conventional one. The ten year 1.415% bond is listed on both the SIX Digital Exchange (SDX) and the main SIX exchange.
Late last year, the wholesale CBDC was used to settle two other SDX digital bond issuances by the Canton of Zurich (CHF 100m) and the City of Basel (CHF 105m).
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