The Canton of Basel-Stadt is embracing the benefits of digitalization in its financial procurement processes. With the support of Basler Kantonalbank, it has launched a digital bond worth 105 million Swiss francs. This bond is being issued on the SDX platform, which is based on blockchain technology, and can be purchased using digital Swiss francs issued by the Swiss National Bank.

Digital bonds are innovative financing instruments that differ from traditional bonds in that their issuance, management, and trading are conducted entirely digitally. Basel-Stadt is taking a pioneering role by issuing its first digital bond, with a value of 105 million Swiss francs and a maturity of 4 years.

The issuance of the digital bond by Basel-Stadt is part of the “Helvetia III” project of the Swiss National Bank (SNB). In this pilot project, which involves digital central bank money for financial institutions, the SNB is collaborating with six commercial banks and the SIX Digital Exchange (SDX). SDX is a fully regulated infrastructure for digital assets based on distributed ledger technology (DLT). The digital bond of Basel-Stadt was issued on SDX through Basler Kantonalbank and can be purchased using digital Swiss francs issued by the SNB. With this pilot project, Basel-Stadt is supporting the digital development of the Swiss financial market.

By issuing its first digital bond, Basel-Stadt is expanding its range of bonds once again. Since 2018, the canton has been issuing “Green Bonds,” and in 2022, it launched Switzerland’s first “Social Bond.”

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Information	Details
Geography	Europe
Countries	🇨🇭
Sentiment	very positive
Relevance Score	1
People	None
Companies	SIX Digital Exchange (SDX), Basler Kantonalbank, Schweizerische Nationalbank (SNB)
Currencies	Swiss Franc
Securities	None