Citi Issues Digitally Native Note on DLT
Citi issued a digitally native structured note on Euroclear’s D-FMI DLT platform, signaling distributed ledger adoption in regulated finance. This shows that compliant asset issuance, trading, and settlement can be achieved on DLT. System architects should prepare for DLT integration with modular APIs, event-driven workflows, and auditable data stores.
Citi's move marks a first for Euroclear's D-FMI platform and the wealth management sector, demonstrating a commitment to efficiency and transparency. The note was issued by Citigroup Global Markets Funding Luxembourg under English law, highlighting Luxembourg's attractiveness for digital finance. Euroclear's Digital Financial Market Infrastructure (D-FMI) uses distributed ledger technology (DLT) to improve market efficiency. D-FMI connects to Euroclear Bank's traditional settlement platform, offering investors access to trading and liquidity management. A key benefit is full integration within Euroclear Bank, ensuring compliance with Central Securities Depositories Regulation (CSDR). Digitally native notes (DNNs) on D-FMI allow for same-day pricing, distribution, and secondary market activity. Euroclear's D-SI service supports the issuance of digital Euro Medium Term Notes (EMTN) under a program with Euroclear Bank as the sole issuer Central Securities Depository (CSD). Citi acts as the issuing and paying agent (IPA), providing data to Euroclear Bank's D-FMI for quicker issuance, settlement, and communication. Citi is developing digital asset solutions using a unified technology framework. Their Citi Integrated Digital Assets Platform (CIDAP) enables the issuance, transfer, and custody of tokenized assets across blockchains. Citi envisions a future where it can custody traditional assets, tokenized securities, crypto, and tokenized money, using the portfolio for collateral management.
