NRW BANK Issues €100 Million Worth of Blockchain-Based Bonds
NRW BANK, the development bank owned by the German state of North Rhine-Westphalia, has made a significant move into digital securities by issuing €100 million worth of blockchain-based bonds. This marks one of the largest public sector initiatives in Europe to embrace digital technologies in finance.
Utilizing Polygon Blockchain and Cashlink Technologies Infrastructure
The two-year bond issued by NRW BANK was executed on the Polygon (POL) blockchain and registered through the infrastructure provided by Cashlink Technologies. Cashlink Technologies is a cryptocurrency securities registrar licensed by Germany’s financial regulator, BaFin, ensuring compliance with regulatory standards.
First Fully Digital Bond Issuance Under Germany’s eWpG
This issuance by NRW BANK represents its first bond issuance as a fully digital crypto security under Germany’s Electronic Securities Act (eWpG). The eWpG allows bonds to exist solely on the blockchain, eliminating the need for physical certificates and streamlining the issuance process.
Joint Lead Managers
Deutsche Bank, DZ BANK, and DekaBank participated as joint lead managers in the issuance, demonstrating the collaboration between traditional financial institutions and innovative blockchain technologies.
Significance of the Move
Michael Duttlinger, CEO of Cashlink, emphasized that this milestone goes beyond technical achievements and signifies the readiness of public financial institutions to adopt blockchain technologies on a broader scale. The integration of blockchain systems in financial operations is becoming increasingly prevalent.
Legislative Support for Blockchain Securities
The Electronic Securities Act (eWpG) in Germany, which took effect in 2021, paved the way for the legal recognition of securities on distributed ledger technologies (DLT). Germany, as one of the largest capital markets in Europe, is at the forefront of embracing blockchain technology in the financial sector.
Disclaimer
*Please note that this article is for informational purposes only and does not constitute investment advice.