ICMA Releases DLT-Based Digital Debt Reference Guide

According to Odaily, the International Capital Market Association (ICMA) has unveiled a reference guide for digital debt based on Distributed Ledger Technology (DLT). This document is the result of efforts by ICMA's DLT Bond Working Group, chaired by Christoph Hock from Union Investment. Hock highlighted the growing significance of token economies, particularly DLT-based bonds, in recent months. He referenced the European Central Bank's recent wholesale DLT settlement trials in central bank money, which have spurred increased activity in this area. Hock noted the current high level of fragmentation across the value chain and expressed anticipation for enhanced collaboration and standardization, which he believes will be crucial in further developing the tokenized world. The DLT Bond Reference Guide by ICMA and its stakeholders marks a significant step in this direction. Union Investment, as an asset management company, has been one of the most active investors in the digital bond sector since the European Investment Bank (EIB) issued its first bond in April 2021. To date, the EIB has issued six digital bonds, including two in November as part of the ECB's DLT settlement trials.