ICMA Releases DLT Bond Reference Guide

The International Capital Markets Association (ICMA) has published a reference guide for digital debt based on DLT. The document is the outcome of ICMA’s DLT Bonds Working Group, which is chaired by Christoph Hock of Union Investment. “The token economy, and in particular DLT-based bonds, have become increasingly important in recent months,” Hock mentioned, alluding to the recent ECB trial for wholesale DLT settlement in central bank money, which has helped increase activity. He continued: “Currently we see a high degree of fragmentation across the value chain, and we look forward to increased collaboration and standardization, which will play a key role in further structuring the token world. With its DLT Bonds Reference Guide, ICMA and all parties involved are taking a big step in this direction.” As an asset manager, Union Investment has been one of the most active investors in the digital bond space, starting with the European Investment Bank’s (EIB) first bond issuance in April 2021. The EIB has now issued six digital bonds, including two issued in November as part of the ECB’s DLT settlement trial.