ESM settles €1bn digital bond via Eurosystem's new Pontes platform
A Bundesbank press release confirms the first live, non-pilot settlement of a supranational DLT bond issuance using the Eurosystem's Pontes platform. It covers the roles of the ESM, Bundesbank, Clearstream and advisory banks, and the expected links to listing, clearing and collateral eligibility. Relevant for treasury, custody and market infrastructure teams tracking Eurosystem DLT settlement capability.
- The ESM priced a first-time digital benchmark bond of €1 billion, its first-ever digitally native bond issuance.
- The Deutsche Bundesbank acted as issuing and paying agent and was onboarded to Pontes as a market participant.
- Clearstream acted as Pontes Market DLT Operator, settling the bond via delivery-versus-payment on its D7 DLT platform with cash settled through TARGET (T2).
- DZ BANK and Société Générale acted as advisory banks on the transaction.
- The bond is expected to be listed on the Luxembourg Stock Exchange and to be eligible as collateral at the Eurosystem Collateral Management System, Eurex Clearing and Eurex Repo.