EIB Issues First DLT-native Commercial Paper on Clearstream’s D7 Platform

The European Investment Bank (EIB) has issued the first DLT-native commercial paper on Clearstream’s D7 platform, marking a pivotal moment for digital finance. Citi facilitated the issuance acting as sole dealer and issuing and paying agent. BIL, DekaBank, DZ BANK, Eurex Clearing, Union Investment and Volksbank Mittlerer Schwarzwald participated as primary investors in the tokenized commercial paper. 

Subsequently, DekaBank and Eurex Clearing were able to mobilize the DLT instrument through Clearstream’s triparty collateral management solution and the ECMS for financing with the Bundesbank, demonstrating the end-to-end interconnectivity of the European digital bond markets and supporting the ECB’s broader digital strategy.

This landmark transaction marked the digital issuance of a DLT-native Euro-denominated commercial paper distributed into the international market (also known as Eurobond market) with 10 business days duration and EUR 77.5 million principal value. It represents a significant step in the tokenization of securities within a secure and regulated market infrastructure, pointing to a future of increased efficiency, transparency, and speed in the issuance and settlement of financial instruments. It was processed via Clearstream’s D7 platform enabling issuance with DLT-based tokenization capabilities at scale, all within a regulated framework that complies with the Central Securities Depositories Regulation (CSDR). 

Following the European Central Bank’s recent decision to accept DLT-native securities issued via central securities depositories (CSDs) as collateral in Eurosystem credit operations, this transaction demonstrates that digital assets can serve not only as investment instruments, but also as mobilizable collateral in the financing ecosystem. By enabling use through Clearstream’s tri-party collateral management solution, it reinforces the relevance of tokenized issuance for market liquidity, collateral mobility and the future functioning of financial markets.

Cyril Rousseau, Director General of Finance at EIB, said: “The transaction illustrates the potential and appeal of applying DLT more broadly in financial markets. With its first DLT-based digital commercial paper issuance, the EIB marks a further milestone in its broader work on the issuance of digital financial instruments, building on extensive experience in this field and supporting the Eurosystem. The Eurosystem eligibility of tokenized securities is a very welcome addition to the digital financial market ecosystem and important for investors.”

Dirk Jones, Head of Issuer Services at Citi, commented: “As sole dealer, and issuing and paying agent, Citi continues to actively participate in the development of digital capital markets worldwide, including in Europe. This transaction, and our support of the EIB and Clearstream, exemplifies the benefits of integrating distributed ledger technology (DLT) in significant financial markets including commercial paper issuances to benefit both global investors and issuers.” 

Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, stated: “D7 is reinventing how securities are issued, managed, and traded, benefiting all market participants by providing the flexibility to choose between dematerialized and tokenized issuance. By combining this innovation with our unique tri-party collateral management connectivity to ECMS, we are leading the capital markets’ transformation and unlocking greater speed, enhanced liquidity, and collateral mobility, while proving the financing utility of tokenized securities within established market infrastructure.”

The DLT-native commercial paper triggered high interest from a diverse group of primary investors: 

Anne-Sophie Dufresne, Head of BIL Corporate and Institutional Banking, said: “This transaction reflects BIL’s commitment to digital innovation and our ambition to help shape the future of capital markets.”

Viktor Banh, Managing Director Digital Assets Markets at Deka, said: “We are pleased to support the EIB and our partners on this important milestone. The eligibility of DLT-native securities as Eurosystem collateral marks a key step towards broader adoption.”

Matthias Bergner, Group Treasurer DZ BANK AG, said: “We are excited to participate in EIB’s landmark transaction, advancing DLT-based capital markets and marking an important step forward for blockchain integration in institutional finance.”

Roman Zeiss, Head of Treasury, Eurex Clearing: “Eurex Clearing strongly supports the ECB’s digital strategy. From a treasury perspective, having DLT-native securities as a re-financing option is a next milestone in our digital roadmap.”

Christoph Hock, Head of Tokenisation & Digital Assets and DLT Transformation Lead at Union Investment, said: “Collaborating with public and private stakeholders for a sovereign, competitive Europe in digital finance, we see ECB collateral eligibility as a key step toward a scalable DLT ecosystem.”
 

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[Editorial note: Please find here a high-resolution photo of Jens Hachmeister.]

About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 180 countries and jurisdictions, providing corporations, governments, investors, institutions, and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | Twitter: @Citi | LinkedIn:
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About Clearstream

Clearstream is an innovative and trusted post-trade business for the global markets. It runs the leading securities and funds servicing ecosystems tomorrow.

The company operates the German and Luxembourg central securities depositories and an international central securities depository for the Eurobonds market. With 22 trillion Euros in assets under custody, it is one of the world’s largest settlement and custody firms for domestic and international securities.

It also delivers premier fund dealing, distribution, digital and data services, covering over 55 fund markets worldwide.

Clearstream is part of Deutsche Börse Group, an international exchange organization and provider of innovative market infrastructures.
To learn more, visit us at www.clearstream.com or connect via LinkedIn.

About EIB and its Digital Finance initiatives

The EIB is one of the largest multilateral financial institutions and a regular and well-established issuer of bonds and commercial papers in the debt capital markets. In the bond market, the EIB has been testing the adoption of DLT since 2021, with the issuance of 6 digital bonds in 3 currencies, along with participation in the Eurosystem’s exploratory work on new technologies for wholesale central bank money settlement.

Media contacts:

Clearstream
Tabea Behr
Phone: +49 (0)69 2 11-13 016
tabea.behr@deutsche-boerse.com 

Citi
Joanna Petty
joanna.petty@citi.com

EIB
Investor.relations@eib.org