Kazakhstan to link govt bonds to Euroclear via direct connection in 2027 - National Bank

ASTANA. April 27 (Interfax) - Euroclear has begun work on a project to make Kazakh government bonds eligible in its international settlement system, with a direct link to be established in 2027, the National Bank of Kazakhstan said.

"The connection to the Euroclear system is planned for next year via a direct link with the domestic infrastructure and will mark an important stage in the development of Kazakhstan's financial market," the regulator said.

The project is aimed to integrate Kazakhstan's government securities market with Euroclear's international central securities depository (ICSD) infrastructure, enabling foreign investors to settle transactions in Kazakh government bonds through Euroclear, in addition to the existing channel via Clearstream.

The National Bank said the initiative is expected to boost liquidity and depth in the government bond market, reduce infrastructure barriers and transaction costs, and enhance Kazakhstan's appeal to international investors.

Euroclear is one of the world's largest financial market infrastructure providers, operating an international central securities depository alongside a network of domestic depositories in Europe. It holds about 40.7 trillion euros in assets under custody and processes roughly 331 million transactions annually, with a total value exceeding 1.1 trillion euros. The company serves around 3,800 clients worldwide.