Citi issues tokenized structured note bought by Banco do Brasil

Banco do Brasil has invested $5 million into a digitally native structured note issued by Citi, marking the first such transaction for a Latin American financial institution. This investment follows Citi's initial launch of its tokenized structured note program in March, which utilizes Euroclear’s D-FMI platform for digital asset issuance. The transaction was executed on August 19 using Banco do Brasil's proprietary treasury capital rather than client funds. Citi facilitated the issuance through its Luxembourg entity, with the London branch acting as the issuing and paying agent. While the underlying reference asset remains undisclosed, the deal highlights the growing institutional adoption of distributed ledger technology for traditional financial instruments. By participating in this program, Banco do Brasil aims to contribute to the development of global standards and infrastructure for digital assets. This move underscores the increasing integration of blockchain-based settlement systems within international banking operations to enhance market efficiency and security.