Summary
TLDR: The Swiss City of St. Gallen will issue a $113 million digital bond using the SIX Digital Exchange, settling with CBDC or tokenized euros. This is part of a Swiss CBDC trial with other regions. SDX is targeting bonds for smaller firms, with St. Gallen’s bond having a three-year maturation period. Tokenized bonds are settled on blockchain infrastructure. Global regulators are welcoming tokenization, with European regulators legalizing RWA tokenization. Other countries like Germany and the Middle East are also making strides in blockchain legislation.
Key Points
1. Swiss City St. Gallen will issue a $113 million three-year digital bond using the SIX Digital Exchange (SDX). The bond can be settled using Switzerland’s wholesale central bank digital currency (CBDC) or tokenized euros.
2. Swiss city St. Gallen joins the Canton of Zurich, the City of Basel, and Lugano in issuing tokenized bonds in an effort that is part of Switzerland’s CBDC trial.
3. SDX, the digital arm of the SIX stock exchange, has issued bonds for major institutions, including SIX, UBS, and the four Swiss regions. It is also targeting smaller companies interested in issuing digital bonds.