Newsletters
Türkiye’s largest private bank, Is Bank, announced Monday that it has issued the country’s first blockchain-based bond worth $100 million.
According to the bank’s statement, the bond—classified as a “Digitally Native Note”—was issued using Distributed Ledger Technology (DLT), a decentralized and secure digital record system. The bond was placed through the Digital Financial Market Infrastructure (D-FMI) platform operated by Euroclear and was priced and settled on the same day.
Proceeds from the Eurobond will be used to support individuals, farmers, and micro- and small-sized enterprises operating in areas affected by the 2023 earthquakes centered in Kahramanmaras.
The issuance aims to boost economic resilience and facilitate recovery across Türkiye’s southeastern provinces, which suffered major losses during the disaster.
The International Finance Corporation (IFC), a member of the World Bank Group, acted as the investor in the bond. Citigroup Global Markets and Citibank’s London branch served as dealer and agent bank, respectively.
Is Bank’s CEO Hakan Aran described the move as a groundbreaking achievement for both Türkiye and developing markets, highlighting the transaction as the first Eurobond issued by a private bank using blockchain infrastructure.
Aran said the issuance reaffirms the Turkish banking sector’s ability to access global financial markets and rapidly adapt to emerging technologies.
“This issuance once again demonstrates Is Bank’s pioneering role in deploying new technologies globally,” Aran noted.
“We believe this example will serve as a valuable reference for the integration of blockchain technology into capital market transactions.”
IFC Managing Director Makhtar Diop also emphasized the innovation behind the deal, calling it a milestone for financial technology and a first for Türkiye. Diop added that blockchain-backed bonds can make financing more accessible and effective.
“This transaction helps direct critical capital to those in need, supporting reconstruction and recovery efforts in the earthquake-affected regions,” he said.
3 min read
