The Asian Infrastructure Investment Bank ( AIIB ) has issued its first digitally native note (DNN) on Euroclear’s Digital Financial Market Infrastructure ( D-FMI ). This is the first digital issuance in US dollars for Euroclear and the first from an Asia-based issuer on its platform.

The DNN, listed on the Luxembourg Stock Exchange, raised USD 300 million to support AIIB’s sustainable development bond program. The bonds can be cleared through the Hong Kong Monetary Authority’s Central Moneymarkets Unit (CMU) and the SIX Swiss Exchange. Euroclear’s Digital Securities Issuance (DSI) service, launched in 2023, enables the issuance, distribution, and settlement of fully digital international securities using distributed ledger technology (DLT).

The D-FMI platform is integrated with Euroclear’s traditional settlement system, ensuring compliance with the Central Securities Depositories Regulation (CSDR). Euroclear Bank served as the issuer central securities depository (CSD), while Citi acted as a dealer, issuing, and paying agent for the transaction. This issuance represents the first collaboration between AIIB and Citi for a digitally native note.

BMO Capital Markets also participated in the initiative as a dealer. The issuance reflects a trend towards increased digitalization in financial markets, with participants highlighting the efficiency and scalability that digital assets can bring to debt capital markets. About the Digital Financial Market Infrastructure (D-FMI) The Digital Financial Market Infrastructure (D-FMI) platform is a new technology initiative based on Distributed Ledger Technology (DLT) designed to enhance market efficiency and connectivity.

The first service available on the D-FMI platform is Digital Securities Issuance (D-SI). This service facilitates the issuance, distribution, and primary market settlement of fully dematerialized international securities, known as Digital Native Notes (DNN), utilizing DLT. Recent trends indicate that market participants are increasingly adopting DLT due to its potential to transform global capital markets.

The success of this technology in both pre-trade and post-trade areas will depend on its ability to provide open, shared data within a secure, controlled environment. For secondary market operations, the D-FMI platform is integrated with Euroclear Bank's traditional settlement system, giving investors access to trading venues and liquidity management tools. This integration ensures compliance with Central Securities Depositories Regulation (CSDR).

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