Luxembourg Takes ‘Major Step Forward’ with Digital Treasury Certificates

Luxembourg’s Ministry of Finance has reported that on Monday 16 June 2025, the State Treasury successfully issued a first series of digital treasury certificates (CTDs), worth €50 million. 

The ministry noted that the CTDs have a maturity of six months, with a zero coupon. The State Treasury issued the CTDs at 99.030% and redeems them at par. HSBC Continental Europe and BGL BNP Paribas contributed to the transaction as joint lead managers. The Luxembourg Stock Exchange (LuxSE) will list the CTDs on the official securities list  (LuxSE SOL) of the LuxSE.

According to the ministry, the digitalisation of treasury certificates represents a major step forward, reducing processing times while offering investors increased security, total transparency and simplified management through a digital platform. Using blockchain technology, the CTDs illustrate the effectiveness of Luxembourg's legal framework for distributed ledger technologies (DLT).

Luxembourg is the second European state to issue a CTD using blockchain technology and the first to manage the issuance through a Luxembourg-based digital platform, HSBC's Orion.

The ministry remarked that “this initiative represents a new step in the modernisation of the State Treasury's financial management, while also demonstrating the expertise of the Luxembourg digital finance ecosystem” and “based on the experience gained from this first blockchain offering, the State Treasury will continue to develop its expertise in this area with a view to future digital offerings”.

Luxembourg’s Minister of Finance, Gilles Roth, commented: "The issuance of digital treasury certificates (DTCs) underlines our commitment to remaining at the forefront of technology in financial infrastructure. It illustrates the innovative strength of our financial centre.” He added: “I welcome this initiative by the State Treasury, which strengthens Luxembourg's position as a leader in the field of digital finance. This issuance demonstrates the effectiveness of our blockchain laws, which guarantee the traceability and verifiability of transactions and provide greater confidence and security for investors."

Moreover, the ministry reported that following this transaction, Luxembourg's public debt stands at approximately €21.9 billion, or 24.3% of GDP and reiterated that, in April 2025, the State Treasury repaid a €1.5 billion loan issued in April 2020.