Client news

Luxembourg issues Europe’s first DLT-native benchmark bond

Luxembourg issues Europe’s first DLT-native benchmark bond
Published Date
Oct 23, 2026
Related people
Image of Frank Mausen
Frank MausenPartner, Luxembourg
Image of Philippe Noeltner
Philippe NoeltnerCounsel, Luxembourg
Image of Enrico Dalle Mulle
Enrico Dalle MulleAssociate, Luxembourg
We have advised Spuerkeess in connection with Luxembourg’s EUR1.7 billion DLT-native sovereign benchmark bond, one of the first issuances of its kind in Europe.

The landmark ten-year transaction represents a major step in the development of digital capital markets in Luxembourg and Europe, demonstrating how distributed ledger technology (DLT) infrastructure can be deployed at scale for sovereign financing while operating within an established institutional and regulatory framework. The bond is Eurosystem collateral eligible and allows for an international distribution. 

The bond was issued via LuxCSD’s D7 DLT platform, with Spuerkeess acting as joint lead manager, issuing agent and paying agent.

A&O Shearman’s Luxembourg team was led by Frank Mausen, Philippe Noeltner and Enrico Dalle Mulle.

“This transaction is an important milestone for Luxembourg and for the development of digital capital markets in Europe.”

“This transaction is an important milestone for Luxembourg and for the development of digital capital markets in Europe. The issuance of a sovereign benchmark bond natively on DLT demonstrates that technological innovation can be accommodated within an established legal and regulatory framework, while retaining the characteristics and protections expected by institutional market participants.” Frank Mausen

“What is particularly significant about this transaction is the way in which DLT has been integrated into existing capital markets infrastructure rather than developing as a parallel ecosystem.”

“What is particularly significant about this transaction is the way in which DLT has been integrated into existing capital markets infrastructure rather than developing as a parallel ecosystem. Combining native DLT issuance with a regulated CSD environment, conventional international distribution and Eurosystem collateral eligibility is an important step towards making tokenized securities part of mainstream capital markets.” Philippe Noeltner

Related capabilities