Synopsis
Lugano, Switzerland, has released its third blockchain-based bond, valued at $139 million. This move shows the city’s commitment to digital finance and blockchain technology and is a significant step toward the adoption of blockchain for public sector financing.
Blockchain Bond Growth
The latest bond, issued on November 4, is part of Lugano’s broader digital bond initiative, with a total value of 320 million CHF ($365 million) across three issuances. This bond is listed on both the SIX Digital Exchange and the traditional SIX Swiss Exchange. Additionally, it is a component of Project Helvetia, the Swiss central bank’s wholesale central bank digital currency pilot.
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Successful Digital Bond Issuances
Lugano’s first blockchain bond was issued in January 2023, followed by a second issuance in February 2024. Both bonds had a total value of 200 million CHF and were successfully subscribed by investors. Paolo Bortolin, the city’s deputy CFO, emphasized how easy it is to issue digital bonds and how the technology has the potential to completely transform the financial sector.
Promoting Wider Adoption
This continued issuance of digital bonds by Lugano indicates a growing confidence in blockchain’s potential to transform financial systems. Bortolin urged other issuers to adopt blockchain, pointing to high investor interest and an hour-long bond subscription. Lugano has established itself as a crypto-friendly city by promoting blockchain adoption for tax payments and the launch of LUGA, a stablecoin based on Bitcoin.
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