The Basler Kantonalbank (BKB) has issued a new bond for the canton of Basel-Stadt. The unique aspect of this bond is that it can be purchased with digital central bank money, as announced by the canton on Wednesday.
However, this can only be done through banks, as the bond is part of the pilot project “Helvetia III”. This project involves the Swiss National Bank, the Swiss Digital Exchange (SDX), and six other financial institutions.
The transactions for this bond are carried out using Distributed-Ledger-Technology (DLT), which is also used in cryptocurrencies. The payment method for these transactions is a so-called wholesale Central Bank Digital Currency (wCBDC). The bonds from Basel-Stadt that are traded with this are also in tokenized form.
Through this issuance, the canton aims to raise 105 million francs. The bond, which has a term of four years, pays a coupon of 1.30 percent. As stated on Wednesday, the bond takes advantage of the advancements in digitization but remains within the regulated financial system. This allows it to leverage the potential of digitization without compromising on security and trust.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇭 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Schweizer Digitalbörse SDX, Schweizerische Nationalbank, Basler Kantonalbank |
| Currencies | BANK |
| Securities | None |
