European Investment Bank Issues €100 Million Digital Bond for Settlement Through Central Bank Digital Currency

The European Investment Bank (EIB) has made history by issuing a €100 million digital bond, marking the second time the institution has used the HSBC Orion platform for such a transaction. The digital bond will be settled using the Euro wholesale central bank digital currency (wCBDC) tomorrow.

The key advantage of a wholesale CBDC for digital bond settlement is atomic settlement, a feature that ensures the simultaneous exchange of cash and title to the tokenized security. This means that the exchange of funds and the transfer of ownership of the digital bond will occur simultaneously, providing increased efficiency and security.

Interestingly, the digital bond issuance by the EIB does not involve the Banque de France's DL3S DLT platform. Instead, the Banque Centrale du Luxembourg served as the local central bank for the EIB's digital bond issuance.

It's worth noting that the Banque de France refers to the tokens issued on its DL3S DLT platform as 'exploratory cash tokens' in separate instances. However, the digital bond tokens issued on the HSBC Orion platform are not referred to as 'exploratory cash tokens'.

The European Central Bank's wholesale DLT settlement trials are ending this month. Despite this, the EIB's digital bond issuance demonstrates the growing interest and adoption of digital assets in the financial sector.

Despite the lack of information about the specific individual responsible for the issuance of the fifth digital bond of the European Investment Bank, this groundbreaking event underscores the institution's commitment to innovation and digital transformation.

As the world continues to embrace digital assets, it's clear that the EIB is at the forefront of this shift, paving the way for a more efficient and secure financial future.