SNB and SIX Digital Exchange Join Forces with World Bank to Speed Up Digital Transformation

A digital bond denominated CHF has been announced by the World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA). Decentralized ledger technology will allow for the settlement of the bond in Swiss francs.

This digital bond will make history as the first digital bond issued by a global issuer with settlements denominated in Swiss Francs wholesale CBDC (wCBDC). The SNB, or Swiss National Bank, will be the one to provide the CDBC. The digital bond is valued CHF 200 million, or around $219 million, and it has a 7-year lifespan. This is the biggest issue of CHF bonds since 2009.

The bank’s connections to SIX Digital Exchange (SDX) and SNB are well-established. The partnership will use distributed ledger technology (DLT) to provide first-rate capital market services. By accepting tokenized CHF as payment for coupon redemptions, the cooperation will increase the usage of DLT. The money will go via SDX, which can link up with current banking institutions.

Proponents of this revolution’s leadership have spoken about the collaborations between the three groups. Commencing with the Vice President and Treasurer of the World Bank, Jorge Familiar.

“The opportunity to issue the inaugural CHF digital bond on behalf of an international issuer is greatly appreciated. The World Bank has taken another giant leap forward in its mission to digitalize the capital markets in tandem with national banks and central securities depositories, with the goal of improving market efficiency. Our prior successes with bond-i and the release of digitally native notes in October served as a foundation for this.”

Chief Information Officer of SIX Digital Exchange David Newns reaffirmed the significance of central bank money tokens. According to him, integrating blockchain technology into the financial markets infrastructure cannot happen until wholesale transaction settlements are implemented.

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