Digital issuance of real world properies is going to be a new norm from 2023 onwards and this year we are going to see more assets converted into digital. In past real estate, gold and the few valuable assets were converted into the digital asset. And now banks are going to convert a lot of govt based assets into digital form.
Switzerland's City of Lugano in past went digital with the bill payment and the polygon integration in variety of it's native applications. City has also did the MOU with El salvador to spread bitcoin adoption.
Lugano is also going to adopt the CBDC as the blockchain and crypto adoption becomes a norm. Let's take a look at new digital bond issuance action of City of Lugano.
Issuance of Digital Bonds on SIX Digital Exchange (SDX)
SDX also known as the six digital exchange is one of the switzerlands financial regulator. And it offers variety of listing, exchange, sales and other operations on the assets. And now the bons which are issues also turned into the digital asset through the SDX. They are being used through the blockchain and also on the exchanges overseas.
City of Lugano has created it's own first digital blockchain bond. And they are offering it through the SDX exchange. And the price and the settlement of the digital bond is going to be through the CBDC. Which is a digital form of the swiss franc. You can check out the press release of the city of lugano on this news here.
Project Helvetia for Central Bank Asset Settlement
World is going towards the digital and the blockchain opportunities. And the way things are working, it'd be reasonable to say that those asset are going to be in need of settlement at some place. So the central banks are going to settle them in a multi phase way for the token, digital assets, custody and the crypto assets. So those would be settled and paid for using the 2 phase settlement.
In first phase the banks, SIX exchange and the settlement network of central banks would be added into a sandbox or a group of network. And in second phase the networks would be settling the respective assets and those transactions and the working is going to get logged into the blockchain. This has been covered in the document explained here.
Bond Volume of CHF 100 million for Lugano
In past issuing the bonds even for small would take up a lot of time. And also settling those bonds and making the same available on the exchange is not an easy task. However that part is now taken care of by allowing the first issuance of the native bond for the City of Lugano and also the cap of 100 million volume of bonds can be issued in short time. Which is a good progress due to the blockchain.
Plan B initiative is going to make the tokenization and the issuance of variety of the digital assets on the blockchian easier for the Switzerland. And the organizations like BIS and exchange like SIX (SDX) are going to turn this into much faster vision execution in upcoming future especially with the CBDC being launched in the coming market for the nation. You can check the rerference for this here.
Switzerland has all the things sorted out, it's kind of the nation you would want to live in for crypto adoption. City of Lugano has already adopted the Tether payments and now they are issuing the bonds and getting it listed through BIS and SDX. This is a step in right direction for an ideal city that adopted crypto.