Slovenia Issues €30M Digital Bond via Tokenization Platform

This innovative move marks the first sovereign digital bond issuance in the EMEA (Europe, Middle East, and Africa) region.

The settlement of this digital bond utilized the Banque de France’s wholesale CBDC. This was part of the Eurosystem’s wholesale DLT settlement trials.

First Sovereign Digital Bond Issuance in EMEA

The European Investment Bank (EIB) has issued digital bonds but operates independently despite being owned by EU member states. In contrast, Slovenia’s issuance represents a direct governmental foray into the digital bond market. Earlier this year, Hong Kong also ventured into the digital bond space with a $756 million digital green bond issuance in February, highlighting a growing global interest in digital financial instruments.

BNP Paribas has been at the forefront of this technological evolution with its two tokenization platforms. Neobonds, part of BNP Paribas’ Global Markets division, utilizes Digital Asset’s Daml smart contract language and the Canton blockchain. This platform was pivotal in recording the ownership of the Slovenian bond on the blockchain.

Source: X

Also, smart contracts facilitated the generation of coupon payments and managed lifecycle events, including the bond’s redemption set for November 25, 2024. It is speculated that the bond’s duration aligns with the conclusion of the Eurosystem settlement trials in November.

The second platform, AssetFoundry, resides within BNP Paribas Corporate and Institutional Banking (CIB) and is based on the public Ethereum network. This platform was previously used for a bond issuance for EDF (Électricité de France) in 2022. BNP Paribas has indicated its commitment to further real transactions and experimental projects across all its settlement solutions.

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