A. M. The Inter-American Development Bank (IDB) has taken a key step in the modernization of financial markets by issuing its first digital sterling bond through the HSBC Orion blockchain platform. The issue, made under Luxembourg law, has a face value of £5 million, with a 15-month term and fixed rate. HSBC and NatWest managed the transaction, marking a milestone in the digitization of debt instruments.
HSBC Orion, a private and secure blockchain platform, acts as the official record of ownership of the bond and facilitates the management of its lifecycle. By integrating the clearing process within the platform, issuance is optimized, reducing costs and increasing operational efficiency. This represents a significant evolution in the use of advanced technologies in the debt markets.
“Blockchain-based bonds offer greater transparency and efficiency, aligning with the IDB’s commitment to adopt innovative financial solutions”, noted Gabriel Yorio, Vice President of Finance and Administration at the IDB. John O’Neill, Global Head of Digital Assets and Currencies at HSBC, emphasized the bank’s commitment to developing digital solutions for its clients.
NatWest also highlighted its role in the digital bond issuance, reaffirming its commitment to the evolution of digital capital markets. The collaboration between IDB, HSBC and NatWest demonstrate how blockchain technology can transform bond issuance, providing greater security and agility in financial processes.
With this transaction, the IDB reinforces its commitment to innovation in capital markets, exploring new digital tools that improve efficiency and allow channeling more resources towards social and economic development in Latin America and the Caribbean.
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