A&O Shearman in Luxembourg acted as a legal advisor to the joint lead managers (JLMs)—Goldman Sachs Bank Europe SE, DZ BANK, and Landesbank Baden-Württemberg (LBBW)—in the successful issuance of EUR100 million 2.545% notes due November 22, 2029 by the European Investment Bank (EIB). This transaction, known as Project Venus 2.0, represents another significant advancement in the use of distributed ledger technology for securities issuance and same-day settlement (T-0).
The Notes were issued in dematerialised form using a private-permissioned blockchain platform distributed ledger technology (DLT) platform (“GS DAP®”) provided and operated by Goldman Sachs Bank Europe SE. This private-permissioned platform leverages the Daml smart contract layer, developed by Digital Asset, and the Hyperledger Besu blockchain baselayer, ensuring secure and efficient issuance, recording, and settlement of the Notes.
A&O Shearman provided legal advice to the joint lead managers (JLMs), ensuring the transaction’s compliance with all relevant regulatory requirements and facilitating its successful execution. The JLMs’ collaboration and expertise were crucial in the successful execution of Project Venus 2.0.
The T-0 settlement process during the primary issuance was facilitated by a private permissioned blockchain platform (“DL3S”) provided and operated by the French Central Bank, as part of the Eurosystem’s exploratory work to test DLT for the settlement of wholesale transactions in central bank money.
This issuance represents a significant step towards the future of financial markets, demonstrating the potential of distributed technology to enhance the efficiency, security, and transparency of securities transactions.
Partner Frank Mausen and counsel Philippe Noeltner led the transaction from Luxembourg, with the involvement of jurist Roman Mazhorov, and junior associates Christine Laux and Giacomo Benincasa.
Frank Mausen, partner in the A&O Shearman global financial markets team, commented: “Project Venus 2.0 showcases the innovative use of distributed ledger technology in the financial markets for T-0 settlement in central bank money, and we are proud to have played a key role in its successful execution by advising the joint lead managers on this transaction.”
Philippe Noeltner, counsel in the A&O Shearman global financial markets team, added : “Advising on Project Venus 2.0 has been a remarkable experience. This transaction not only highlights the transformative potential of DLT for capital markets transactions but also underscores the importance of legal expertise in navigating complex regulatory landscapes in fast-moving environments.”
