Weekly Recap: Digital tokenised bonds and Citigroup lifts target to 860p

NatWest Group has announced strategic plans to issue three tradable digital bonds scheduled for release in the first quarter of 2027. These financial instruments are designed to be settled using tokenised deposits, marking a significant step in the bank's integration of distributed ledger technology into its debt issuance framework. This development coincides with Citigroup raising its price target for NatWest shares to 860p, reflecting positive market sentiment toward the bank's evolving operational strategy. Beyond its digital asset initiatives, NatWest continues to facilitate traditional corporate dealmaking, recently providing over £30 million in UK Export Finance-backed funding for NP Aerospace. The move toward tokenised bonds highlights a growing trend among major financial institutions to modernize settlement processes and enhance liquidity through blockchain-based infrastructure. By leveraging tokenised deposits, NatWest aims to streamline the lifecycle of debt securities, potentially reducing settlement times and operational overhead. This initiative underscores the broader institutional shift toward adopting programmable money and digital securities within the traditional banking sector.