LINARI LAW

Luxembourg issues first digital treasury certificates on blockchain

On June 16, 2025, Luxembourg’s State Treasury took a major step in its digital finance journey by issuing its first-ever Digital Treasury Certificates (DTCs), totaling EUR 50 million. These six-month, zero-coupon instruments were priced at 99.030% and will be redeemed at par upon maturity.

This groundbreaking transaction showcases the practical implementation of Luxembourg’s advanced legal framework for distributed ledger technologies (DLT). Entirely executed via a  digital platform, the issuance underscores the government’s commitment to modernizing public debt instruments and enhancing efficiency, transparency, and trust in financial markets.

The initiative is part of a broader ambition to build scalable frameworks for digital debt issuance and expand Luxembourg’s expertise in this field. More tokenized issuances will surely follow as the country continues to advance its digital finance roadmap.

Thanks to a clear and supportive regulatory environment, Luxembourg is increasingly seen as a hub for fintech and DLT experimentation. Its legal certainty around blockchain-based securities makes it a compelling jurisdiction for innovation in capital markets.

This transaction offers valuable insights for professionals working in capital markets, fintech, and blockchain finance. It confirms that tokenized sovereign debt is not only legally viable under Luxembourg law but also commercially attractive.

If you’re interested in blockchain-based financing or tokenized securities, our legal team is here to help. Don’t hesitate to contact us or subscribe to our newsletter for updates and insights.

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