Luxembourg Issues First Digital Treasury Certificates
Luxembourg further cemented its leadership in digital finance by issuing its first Digital Treasury Certificates, marking another milestone in the development of a future-ready financial ecosystem.
The issuance, which took place on Monday, was carried out under Luxembourg law and through HSBC’s Orion platform; a purpose-built DLT infrastructure based in Luxembourg. It stands as the largest Treasury Certificates issuance to date using DLT and places Luxembourg among the very first countries globally to execute such a transaction.
The Digital Treasury Certificates are more than a technological milestone – they represent a step forward in modern sovereign financing. By leveraging DLT, the issuance reduces processing times, enhances security, and improves transparency and operational efficiency for investors.
This initiative showcases the strength of Luxembourg’s digital finance environment, where regulation and innovation work hand in hand. Luxembourg’s four dedicated blockchain laws further strengthen this environment, providing firms with clear legal certainty for the issuance, circulation, and custody of digital assets on DLT platforms. It also follows a series of pioneering DLT-based bond listings in Luxembourg, reinforcing the country’s position as a global hub for digital securities.
“Building on our advanced blockchain legislation, Luxembourg is putting proofs of concept into action. By being the first country to issue Treasury Certificates at this scale on DLT, Luxembourg is once again showing its leadership in the digital asset space. As Minister of Finance, I will continue to ensure that the global financial industry finds a conducive environment in Luxembourg for the tokenisation of assets and investment vehicles. We are committed to staying at the forefront of digital asset innovation,” stated Gilles Roth, Luxembourg’s Finance Minister.
Encouraged by strong investor feedback, the Luxembourg State Treasury will be building on the experience and feedback gathered from this first DLT issuance to explore the possibility of a potential future issuance of a digital sovereign bond. This forward-looking approach is part of a broader ambition to support financial innovation and offer a tangible proof of concept within the euro area.
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