KfW, the German state-owned development bank, plans to issue a tokenized bond in 2024. Technically KfW issued a digital bond this year, a €20 million issuance using Deutsche Börse’s Clearstream. However, the digital storage on Clearstream’s D7 platform used a centralized security depository.

Germany’s digital securities legislation eWpG supports both centralized and decentralized digital depositories that use blockchain. In the latter case, Germany refers to them as crypto securities. Hence, this is what KfW is planning next year.

The International Financing Review reported that KfW discussed the tokenized bond in a briefing. Germany’s Union Investment will once again be an anchor investor for the KfW tokenized bond. The German asset manager has been a prolific investor in tokenized bonds – starting from the first European Investment Bank (EIB) bond to the Siemens bond, and Metzler’s tokenized fund units. KfW’s treasurer, Tim Armbruster, said the focus was on the learning experience.

If other bond issuances are anything to go by, the first is often the most painful. That’s not from a technical point of view but pinning down the legal issues. If the issuance also uses Clearstream’s D7, it could be D7’s first crypto security. So far D7 has been used for several thousand digital issuances, but all on the centralized depository.

Meanwhile, Cashlink recently published a review of the cost savings from digital bonds. Cashlink is a German crypto securities registry startup and the most prolific platform for bonds. It was involved in the recent Metzler fund tokenization.

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details