The €100m Digital Native Note, issued by the World Bank and admitted on the Luxembourg Stock Exchange, marks the first time a digitally native security issued on a distributed ledger technology (DLT) infrastructure is admitted to trading on a market that is covered by the Markets in financial instruments directive (Mifid II), said a press release published by the Luxembourg Stock Exchange on 24 October 2023.

The bond was issued using Euroclear’s Digital Securities Issuance (D-SI) service, which allows investors to trade digitally native securities that were issued on Euroclear’s Digital Financial Market Infrastructure (D-FMI).

“This new digital bond issuance and the development of Euroclear’s D-FMI platform represent a firm step towards the all-important digitalisation of capital markets, which the Luxembourg Stock Exchange is actively contributing to,” said Arnaud Delestienne, director of international capital markets and member of the executive committee at LuxSE. “We firmly believe in the transformative power of DLT to enhance international capital markets and are excited to reaffirm our commitment to our industry’s digital future with the listing of the first tradable digitally native security in the EU.”

The Luxembourg Stock Exchange in January 2022 became the first exchange in the EU to admit three digital securities issued by Société Générale, followed by three digital securities . The EIB’s from ratings agency Moody’s in July 2023.