Clearstream and Euroclear Launch Digital Eurobond Revolution

Two financial titans just rewired the backbone of European debt markets.

Clearstream and Euroclear—the settlement powerhouses handling trillions in securities—are dragging the eurobond market into the digital age. This isn't some theoretical blockchain experiment; it's a full-scale infrastructure overhaul that could reshape how institutions trade debt instruments.

The Digital Settlement Shift

Forget paper-based legacy systems. The new digital framework slashes settlement times from days to minutes. It bypasses traditional intermediaries while maintaining regulatory compliance—a rare feat in finance's cautious dance with innovation.

Why This Matters Now

Institutional adoption of blockchain tech has been accelerating, but mostly in private deployments. This marks the first time major market infrastructures are jointly digitizing a core public market instrument. The move signals that traditional finance finally understands distributed ledger technology's value beyond cryptocurrency speculation.

The initiative demonstrates that even the most conservative players recognize digital assets' potential to streamline operations—though naturally they're implementing it in the most bureaucratic way possible. Because what's a financial innovation without three committees and a 200-page compliance manual?

• Dematerialized issuance of Eurobonds as of 2026
• New Issuance & Processing Taxonomy as industry-wide data standard to support automation and streamlining
• Basis for future digitization and enhanced market efficiency

Clearstream and Euroclear, the two international central securities depositories (ICSDs), are taking significant steps toward digitizing the Eurobond market. Eurobonds represent the world’s third-largest debt market with a current value of €14 trillion.

As from Q1/2026, the two ICSDs will support the issuance of Eurobonds in dematerialized form, eliminating the need for paper certificates and representing a milestone in the adoption of automation and new technologies across the entire Eurobond lifecycle.

In their continued efforts to reduce fragmentation, the ICSDs have co-developed a data standard, the Issuance & Processing Taxonomy (IPT). The IPT is designed as an industry-wide, technology-agnostic standard. It supports different communication channels, including application programming interfaces (APIs). In December 2025, the two ICSDs will publish an extension to the IPT to include token taxonomy for distributed-ledger technology (DLT). The IPT is aligned with the International Capital Market Association’s (ICMA) Bond Data Taxonomy (BDT).

By digitizing the Eurobond market, Clearstream and Euroclear are unlocking substantial benefits for market participants—faster and more efficient trading, lower vault operation costs through the elimination of physical certificates, stronger security against loss, theft, or forgery, and full transparency with an accessible electronic ownership record. These initiatives lay the foundation for a fully digital Eurobond market, with the potential for automated lifecycle management and the integration of distributed-ledger technology. Clearstream and Euroclear remain committed to driving this transformation to further optimise the Eurobond market and realize its full potential.

Isabelle Delorme, Head of Product Strategy & Innovation at Euroclear, commented: “This joint initiative represents a significant milestone for the Eurobond market and for the wider industry. Our new taxonomy is a game changer for clients wanting to use APIs to issue Eurobonds and preparing to issue tokenized bonds. By embracing digital transformation, we are unlocking real benefits for our clients and shaping a more efficient, secure, and sustainable market—keeping the Eurobond market at the forefront of innovation.”

Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, said: “The digitization of the Eurobond market is a testament to the collaborative efforts between the ICSDs and across the industry. It opens exciting possibilities for further innovation where Eurobonds can serve as a blueprint for strong and efficient European capital markets. The modernization of this global success story based in Europe enables greater accessibility for our clients and all participants.”

The Eurobond market is the world’s third largest debt market and supports asset classes such as exchange-traded products (ETPs), structured securities and certain equities. It caters to issuers and investors from all time zones and supports issuance, settlement, asset servicing and financing of currently 350,000 distinct Eurobonds that represent a total market value equivalent to over €14 trillion. With 12,000 issuers based across 130 countries, Eurobonds represent a truly global offering, with a more diverse issuer base than any other bond market worldwide. The Eurobond ecosystem is built on a network of global corporate trust banks, dealers, and specialised service agents. Eurobonds can be issued under over 50 governing laws and in up to 100 denomination currencies.

Source: Clearstream