Details of KfW’s Blockchain-Based Digital Bond Issuance in 2024

German bank KfW to Issue Blockchain-Based Digital Bond in 2024

In a groundbreaking move towards digitalization, the state-owned German bank KfW has announced plans to issue a blockchain-based digital bond in the summer of 2024. This initiative aims to showcase the potential of crypto securities, which are securities issued on a blockchain platform.

The bond will be issued under the German Electronic Securities Act (eWpG) with Cashlink serving as the registrar. Union Investment will be the anchor investor, and a bookrunner consortium consisting of DZ Bank, Deutsche Bank, LBBW, and Bankhaus Metzler will be involved in the issuance process. DZ Bank will also act as the collective registered holder of the bond.

Tim Armbruster, Treasurer at KfW, highlighted the importance of digitalization in the refinancing process, stating that it will lead to increased efficiency and scalability. This move marks KfW’s first foray into crypto bonds, following a previous digital bond issuance on Deutsche Börse’s D7 platform.

KfW is collaborating with the Luxembourg-based NowCM digital bond issuance platform, which acquired Nivaura, a capital markets automation firm backed by the London Stock Exchange. The issuance will be conducted on the Polygon public blockchain, further solidifying KfW’s commitment to embracing blockchain technology.

This innovative approach by KfW underscores the growing trend towards digitalization in the financial sector and sets a precedent for future blockchain-based bond issuances. Stay tuned for more updates on this groundbreaking development.