2026 Perspectives for the Public Sector

Emerging Platforms and Market Infrastructures The potential of digital bonds is being realized by a new generation of platforms and market infrastructures designed to support the full lifecycle of a digital security. These systems are moving beyond proof-of-concept to become regulated, scalable solutions for institutional-grade issuance. Leading infrastructures that bridge digital and traditional ecosystems include: • Euroclear’s D-FMI: A key development, the D-FMI is a DLT-based platform for issuing, distributing, and settling fully digital international securities, known as Digitally Native Notes (DNNs). The D-FMI offers significant advantages by integrating digital innovation within the established regulatory landscape. Fully compliant with the EU Central Securities Depositories Regulation (CSDR), it ensures complete legal and settlement finality. Its design is seamlessly interoperable with traditional market infrastructure, allowing the resulting DNNs to be listed on regulated exchanges for broadmarket access. Crucially, these DNNs are also eligible for use as collateral, maintaining their utility across standard financing operations. • Clearstream’sD7: This platform is at the forefront of digitizing post-trade services, enabling the issuance of digital securities at scale. Its primary use to date has beenwithin the German domesticmarket. However, the platform’s scope is expanding and it will be utilized for the Eurobondmarket, allowing for the future creation of tokenized Eurobonds under both English and Luxembourg lawwithin a fully regulated framework. Its key role in the European Central Bank’s trials for DLT-based settlement underscores its importance in the region’s digital asset infrastructure. • SIX Digital Exchange (SDX): As a fully regulated financial market infrastructure in Switzerland, SDX offers an integrated, end-to-end service for the trading, settlement, The public sector is at the forefront of building the foundations of digital capital markets. Sovereigns, local authorities and development banks are grappling with ever-increasing financing needs for infrastructure, public services, and economic development. and custody of digital assets. Its collaboration with the Swiss National Bank on Project Helvetia to settle transactions using a wholesale central bank digital currency (wCBDC) represents a major step towards a fully on-chain financial ecosystem. This evolution is further supported by increasing collaboration between International CSDs, the Depository Trust & Clearing Corporation (DTCC), and CSDs globally. These entities are actively working together to develop cross-platform digital interoperability standards and solutions, aiming to bridge fragmented digital ecosystems and enhance seamless asset transfer and settlement across different jurisdictions. DTCC, Clearstream, and Euroclear have published joint papers advocating for greater industry collaboration to overcome challenges such as fragmented standards, varying regulatory treatment, and siloed liquidity that impede the progress of digital assets. Underpinning these platforms is the growing momentum towards cash-on-chain solutions, which allow for true delivery-versus-payment (DvP) settlement on a single ledger. This critical enabler promises to unlock the full potential. The trajectory is clear: as distributed ledger technology continues to advance in parallel with the development of supportive regulatory frameworks, the consistent engagement of issuers, agents, and investors in live digital issuances signals a clear market evolution. The successful integration of CSDR-compliant platforms such as Euroclear’s D-FMI and Clearstream’s D7 with established market practices demonstrates that innovation and regulatory certainty can coexist. For public sector entities, this convergence is not merely a technological shift but a strategic opportunity. By continuing to partner with experienced intermediaries and participating in this evolving ecosystem, they can harness these advancements to build a more efficient, transparent, and resilient foundation for public finance. 50 Tokenizing Public Sector Debt: Reimagining the Bond Lifecycle from Issuance to Custody