EIB issues digital securities and gets used in Eurosystem for collateral
- Tokenization Insight
- Jul 6
- 2 min read
EIB issues digital securities and gets used in Eurosystem for collateral.
The European Investment Bank (EIB) has issued the first DLT-native commercial paper on Clearstream’s D7 platform.
More importantly, DekaBank and Eurex Clearing successfully mobilized the digital security through Clearstream's triparty collateral platform and the Eurosystem Collateral Management System (ECMS) to obtain financing from the Deutsche Bundesbank.
Citi acted as sole dealer and issuing & paying agent, while BIL, DekaBank, DZ BANK, Eurex Clearing, Union Investment and Volksbank Mittlerer Schwarzwald participated as investors.
That demonstrates an end-to-end digital issuance, settlement and collateral workflow within Europe's regulated market infrastructure.
➡️ Why this matters
There are broadly two models emerging for tokenized securities in Europe:
1️⃣ Crypto securities - securities recorded on a crypto securities register maintained by a licensed crypto securities registrar.
2️⃣ Central register securities - securities issued digitally and recorded within a regulated Central Securities Depository (CSD) such as Clearstream, with DLT used as the underlying technology for the register.
While crypto securities attracted significant attention when Germany introduced the Electronic Securities Act, the institutional market has largely gravitated toward the second model.
Why?
Because it fits naturally into today's capital markets infrastructure.
- Banks are already connected to CSDs
- Custody infrastructure already exists
- Settlement processes remain unchanged
- Collateral management already works
- Eurosystem collateral eligibility is preserved
- Operational changes are minimal
This transaction isn't simply about issuing commercial paper on blockchain. It's about embedding DLT into the existing post-trade ecosystem.
Rather than creating a parallel "crypto securities" ecosystem, Europe's market infrastructure is becoming blockchain-enabled.
The industry's center of gravity has shifted from "crypto securities replacing CSDs" to "CSDs becoming DLT-enabled."
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