Let's move beyond theory and walk through a real-world example. Imagine the City of Amsterdam wants to raise €50 million for a new green energy project. Here’s how issuing a digital municipal bond on Dusk Network would work, highlighting its transformative advantages.
Phase 1: Structuring & Native Issuance
The city's treasury, alongside a legal partner, defines the bond terms: 5-year maturity, 3% annual coupon. Instead of printing paper certificates or using a traditional securities depository, they use Dusk's infrastructure to perform a native on-chain issuance. A fixed-supply bond token is created via a compliant smart contract that encodes all rights and payment schedules. This is the birth of a pure digital asset, not a tokenized IOU.
Phase 2: Distribution & Investor Onboarding
The bond offering is listed on the STOX platform. Institutional and qualified investors (pre-verified through KYC processes) can participate using euros from a partnered e-money institution like Quantoz. Upon purchase, the bond tokens are delivered instantly (T+0 settlement) to the investor's Dusk Vault. The transaction is private (using Phoenix), protecting the city's and investors' financial data.
Phase 3: Secondary Trading & Lifecycle Management
An investment fund can later sell part of its position to an insurance company on the STOX order book. The trade is again settled instantly. Crucially, every six months, the smart contract triggers automatically: it pulls the coupon payment from the city's designated wallet and distributes it pro rata to all current token holders' Vaults. No manual intermediation, no delay, zero error.
The Bottom Line: This case study shows Dusk's full-stack solution replacing a slow, manual, intermediated process with a seamless, automated, and private digital workflow. It turns a complex financial instrument into a programmable, efficient, and globally accessible asset, demonstrating the tangible efficiency gains for issuers and investors.
