Part of Project Helvetia, a Swiss central bank programme exploring central bank digital currency, the bond’s issuance enhances Lugano’s reputation in digital finance innovation.
The Swiss city of Lugano has taken another step in its embrace of blockchain technology by issuing a third bond on digital platforms. Valued at 120 million CHF (around $139 million), the new bond is dual-listed on the SIX Digital Exchange and the SIX Swiss Exchange. The issuance is part of Project Helvetia, the Swiss central bank’s pilot programme for wholesale central bank digital currency, and its settlement is planned for 25 November.
Since its first digital bond issuance in January 2023, Lugano has raised a total of 320 million CHF (£365 million) through blockchain technology. City officials see these moves as part of a larger mission to lead digital finance innovation, with Deputy CFO Paolo Bortolin expressing hope that Lugano’s initiatives will encourage other issuers to consider blockchain bonds.
In addition to bonds, Lugano has pioneered the use of digital currencies, including allowing Bitcoin for tax payments and introducing a Bitcoin-backed stablecoin, LUGA, accepted by over 350 merchants in the city. The city’s efforts underscore its commitment to positioning Lugano as a global centre for Bitcoin and blockchain technology.
