The Czech National Bank has issued its first DLT bond. It's the first time in the CNB's own history it has issued bonds in tokenised form.
What it did:
• Issued koruna-denominated bonds on DLT infrastructure run by the Central Securities Depository
• Tested transfers, purchases and sales against payment, and repo
• Used a domestic commercial bank as the counterparty
• Settled almost instantaneously
• Kept test volume in the tens of thousands of koruna, in October and November
Why it matters: the CNB says it has verified it can use this infrastructure for monetary policy operations and for managing its international reserves. It now sits in a small group of EU central banks that have successfully tested the technology.
Should more central banks issue bonds this way?