Blockchain Adoption in Local Governments: The Case of Lugano

The present article examines the pioneering case of blockchain adoption in local government by the City of Lugano and discusses how Distributed Ledger Technology (DLT) may support institutional innovation beyond pilot experimentation. The Swiss municipality of Lugano has developed an integrated strategy that combines permissioned blockchain infrastructure (SwissLedger), a municipal payment token (LVGA), digital literacy and payment innovation initiatives (Plan ), and the issuance of fully digital municipal bonds. By adopting a case study methodology, the analysis draws on quantitative indicators of platform usage, operational data, and a sentiment analysis of media coverage to document technological developments and socio-economic patterns correlated with the initiative. SwissLedger has been adopted as an infrastructural experiment for secure document notarization, public administration digital services, open-finance interoperability with optional compliance tools, and sector-specific applications. Furthermore, the Plan initiative emerges as a communication catalyst, generating international visibility and positive sentiment, alongside descriptive statistics consistent with local economic activity. Lugano’s digital bond issuances also attracted attention to the potential of how DLT could support settlement processes and transparency in public finance. Overall, the evidence gathered suggests that DLT adoption in local government is not merely a technological upgrade, but rather part of a broader organizational transformation process. The case findings also outline a set of potentially transferable elements for municipalities seeking to align innovation with public value creation.