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.

Browse All

Sick leave and immediate dismissal: a clear line from the Court of Appeal

A recent decision from the Luxembourg Court of Appeal brings clarity to the legal limits of sick leave protection. On May 22, 2025, the Court ruled on a case involving the immediate dismissal of an employee during medical leave. The ruling draws a firm line between procedural missteps and actual…

Pension reform in Luxembourg: longer working lives ahead!

Luxembourg is reshaping retirement with a new pension reform that’ll make working longer the norm—without raising the official retirement age. By gradually extending contribution years and adding flexible retirement options, the plan balances tradition with modern needs.

Tokenisation: paving the way in Luxembourg’s financial sector

Tokenisation is revolutionising Luxembourg’s financial sector by enabling digital representation of real-world assets on the blockchain. It streamlines processes like fund share issuance, reduces costs, and improves transparency with auditable records. With automated compliance features such as KYC and AML, tokenisation also enhances regulatory adherence.

Know Your Assets: Strengthening ML/TF compliance for registered AIFMs

As regulatory scrutiny grows, Know Your Assets (KYA) is becoming essential for registered AIFMs managing ML/TF risks. This article outlines what KYA compliance means in practice and how AIFMs can strengthen their approach, especially for unlisted assets.

Court of Appeal clarifies the grey zone and sets out employment relationship rules

In a key judgment on April 3, 2025, the Luxembourg Court of Appeal clarified a common labour law question: when does a role qualify as employment versus a corporate mandate? The case involved claims of abusive dismissal and severance pay but ultimately hinged on the test of subordination. The ruling…

Browse All