The European Investment Bank (EIB) has issued the first distributed ledger technology-native commercial paper on Clearstream’s D7 platform.

Unveiled late last year, the D7 DLT platform operates over Google Cloud, promising streamlined issuance and lifecycle management and an immutable and transparent record of ownership and transactions and compatibility with existing market infrastructure.

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 tokenised commercial paper.

DekaBank and Eurex Clearing were then able to mobilise 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.

Following the European Central Bank’s recent decision to accept DLT-native securities issued via central securities depositories as collateral in Eurosystem credit operations, Clearstream says the transaction demonstrates that digital assets can serve not only as investment instruments, but also as mobilisable collateral in the financing ecosystem.

Jens Hachmeister, head, issuer services and new digital markets, Clearstream, says: “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 tokenised securities within established market infrastructure.”