The Finance Division of the City of Lugano recently issued a 100 million franc bond with a 6-year term and 1.625% coupon, using Blockchain technology in collaboration with Zürcher Kantonalbank. This issuance marks the first bond in the public sector to be issued, listed, and traded digitally on a regulated platform based on Blockchain technology. The decision to utilize the SIX Digital Exchange (SDX) platform aligns with the City’s goal of being a model of innovation and promoting digital transformation, technological innovation, development, and research. This issuance through SDX is in line with the Lugano Plan ₿ initiative, which aims to promote the adoption of Blockchain technology in various fields.
By issuing the bond through the SDX platform, the City of Lugano hopes to encourage innovation in the public sector and support the digital evolution of the traditional bond issuance system. The bond loan will be listed on both the SDX platform and the SIX Swiss Exchange platform, allowing investors to trade bonds on both platforms. The bond received an Aa3 rating from Moody’s rating agency and has the potential to be included in the Swiss Bond Index. The City acknowledges and thanks the partners involved in making this innovative issuance possible, including Zürcher Kantonalbank, SDX, and Moody’s.
Through this issuance, the City of Lugano aims to pave the way for the public sector to embrace technological advancements, particularly in the financial sector. By embracing Blockchain technology, the City hopes to set an example for other municipalities and organizations to follow suit. The decision to issue the bond through the SIX Digital Exchange demonstrates the City’s commitment to staying at the forefront of innovation and supporting digital transformation. This issuance also highlights Lugano’s proactive approach to adopting new technologies and promoting their benefits across various sectors.
The issuance of the City of Lugano’s bond on the SDX platform showcases the potential for blockchain technology to revolutionize traditional financial systems. By listing the bond on both digital and traditional platforms, the City is providing investors with more options for trading and investing. The bond’s official rating from Moody’s and potential inclusion in the Swiss Bond Index further solidify its credibility and attractiveness to investors. The City’s commitment to innovation and technology is evident in its decision to embrace Blockchain technology for this issuance and support its adoption in various fields of activity.
The City of Lugano’s issuance of a bond on the SDX platform signals a shift towards digitalization in the financial sector and sets a precedent for other public entities to follow suit. The use of Blockchain technology not only streamlines the issuance process but also enhances transparency and security in financial transactions. The City’s proactive approach to embracing new technologies reflects its commitment to remaining at the forefront of innovation and promoting digital transformation. By issuing the bond through the SDX platform, the City is not only supporting the evolution of traditional bond issuance but also demonstrating its readiness to embrace the digital future.
In conclusion, the City of Lugano’s issuance of a bond on the SDX platform represents a milestone in the adoption of Blockchain technology in the public sector. This innovative approach to bond issuance demonstrates the City’s commitment to promoting digital transformation and fostering innovation. By embracing new technologies and collaborating with partners like Zürcher Kantonalbank, SDX, and Moody’s, the City is setting a precedent for other municipalities and organizations to follow. The dual listing of the bond on digital and traditional platforms provides investors with flexibility and opportunities for investment. Overall, the City of Lugano’s issuance of a bond on the SDX platform showcases the potential for Blockchain technology to revolutionize traditional financial systems and drive digital transformation in the public sector.
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