Luxembourg issued the first blockchain bonds
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On 16 June 2025, the Luxembourg State Treasury conducted a historic issue of the first €50 million digital Treasury Certificates (CTDs). These securities were issued with a six-month maturity and no coupon - investors purchased them at 99.030% of par and will receive 100% at maturity.
The main innovation is that the CTDs were issued using blockchain technology, within the framework of the distributed ledger technology (DLT) legislation in force in the Grand Duchy. The platform on which the issuance took place is Orion, developed by HSBC and hosted in Luxembourg, making the country the first EU state to host such instruments through a localised digital platform.
Previously, only one European state had issued such securities on blockchain, but managed them through an overseas infrastructure.
The digitalisation of government debt instruments allows for shorter processing times, full transparency and traceability of transactions, and reduced operational risks through the automation of processes. These certificates are already listed on the official listing of the Luxembourg Stock Exchange (LuxSE SOL).
The successful placement attracted high interest from investors, emphasising the attractiveness of new financial solutions in line with the spirit of the times. HSBC Continental Europe and BGL BNP Paribas participated in the transaction as coordinators of the issue.
Finance Minister Gilles Roth said that the issue reflects Luxembourg's "strategic commitment to remain at the forefront of technological advances in finance". He also emphasised that the CTD is proof of the effectiveness of the country's legislative framework, which guarantees a high degree of security and trust.
Luxembourg's public debt after this operation is 21.9bn euros, or 24.3% of GDP - one of the lowest in the EU. In April 2025, the country already repaid a €1.5bn loan placed at the height of the pandemic in 2020.
This step not only demonstrates the technological maturity of Luxembourg's financial system, but also forms a benchmark for other EU countries in the digitalisation of public debt and improving the efficiency and security of the financial infrastructure.
