CNB issues first tokenised bond
12 November 2026 Czechia
Image: rinrada/stock.adobe.com
The Czech National Bank (CNB) has issued its first tokenised bonds using distributed ledger technology (DLT).
According to the CNB, the initiative was designed to enable faster securities settlement on a 24/7 basis while reducing administrative processes.
The testing was conducted through the CNB Lab innovation hub and covered the full issuance process, including contractual and rule changes, as well as portfolio management.
The exercise demonstrated that the technology could be used both for monetary policy operations and the management of international reserves, the bank says.
Aleš Michl, Governor of CNB, says: “We are conservative in monetary policy and innovative in everything else. We want low inflation and a strong koruna that is respected worldwide.
“We started with instant payments, thanks to which money now moves instantly from one account to another. Now we have tested the next level: DLT. A possible platform for the future.”
The central bank issued koruna-denominated bonds in tokenised form on DLT infrastructure operated by the central securities depository, which also registered and settled transactions in the securities.
As part of the testing, the CNB conducted bond transfers, purchases, and sales against payment and repo transactions.
The transactions were carried out with a domestic commercial bank acting as counterparty and took place during October and November, using volumes in the tens of thousands of koruna for testing purposes.
The CNB says the project places it among a small group of European Union central banks to have successfully tested DLT-based bond issuance and settlement infrastructure.
Michl adds: “The goal is clear: to create a large market for koruna-denominated assets that are easier to buy and sell than German bunds.
“The central bank must be involved from the outset, so that settlement has central bank money at its core, not private money such as stablecoins.”
According to the CNB, the initiative was designed to enable faster securities settlement on a 24/7 basis while reducing administrative processes.
The testing was conducted through the CNB Lab innovation hub and covered the full issuance process, including contractual and rule changes, as well as portfolio management.
The exercise demonstrated that the technology could be used both for monetary policy operations and the management of international reserves, the bank says.
Aleš Michl, Governor of CNB, says: “We are conservative in monetary policy and innovative in everything else. We want low inflation and a strong koruna that is respected worldwide.
“We started with instant payments, thanks to which money now moves instantly from one account to another. Now we have tested the next level: DLT. A possible platform for the future.”
The central bank issued koruna-denominated bonds in tokenised form on DLT infrastructure operated by the central securities depository, which also registered and settled transactions in the securities.
As part of the testing, the CNB conducted bond transfers, purchases, and sales against payment and repo transactions.
The transactions were carried out with a domestic commercial bank acting as counterparty and took place during October and November, using volumes in the tens of thousands of koruna for testing purposes.
The CNB says the project places it among a small group of European Union central banks to have successfully tested DLT-based bond issuance and settlement infrastructure.
Michl adds: “The goal is clear: to create a large market for koruna-denominated assets that are easier to buy and sell than German bunds.
“The central bank must be involved from the outset, so that settlement has central bank money at its core, not private money such as stablecoins.”
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