Slovenia has made a historic move by issuing a sovereign digital bond, becoming the first European Union member to do so. The 30 million-euro ($32.5 million) bond sale was part of the European Central Bank’s (ECB) money settlement experimentation program and was settled on-chain through the Bank of France’s tokenized cash system. The four-month notes, which carry a 3.65% coupon, mature on November 25. BNP Paribas acted as the global coordinator and sole bookrunner for this innovative financial instrument.
The ECB completed its first test of the settlement of a wholesale central bank digital currency (CBDC) in May, indicating a growing interest in exploring the potential of digital assets for financial markets. Slovenia’s government expressed optimism about the future of distributed ledger technology, anticipating significant growth and wider adoption in the coming years.
These initial transactions and experiments with wholesale tokenized central bank money represent an important step toward greater transparency and efficiency in financial markets. While the current value issued and traded is still relatively small, the adoption of this technology is expected to grow significantly, influencing the future landscape of global finance.
BNP Paribas utilized its private tokenization platform, Neobonds, built with Digital Asset’s Daml and leveraging the Canton blockchain, to facilitate this bond issuance. This initiative underscores Slovenia’s commitment to innovation in financial technologies and sets a precedent for other EU nations to follow.
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