German German development of German NRW.Bank released a € 100 million ($ 116.7m) The Block -based Blockchain, which marks one of the largest public sectors is still moving digital security in Europe.
The two-year bond was issued to the polygon blockchain and registered using the infrastructure of cashlink technologies, a bafin-licensed crypto securities registrar. This is the first time NRW.Bank has released a full digital bond as a crypto security under Germany’s Electronic Securities Act (Ewpg)allowing bonds to exist in whole on blockchain networks without a physical certificate.
The release attracts participation from institutional investors, including Deutsche Bank, DZ Bank and Dekabank acting as joint lead managers. Strong demand features growing market appetite for tokenized financial instruments that promise faster times of negotiation, transparent recordkeeping and reduced administrative costs.
“This is more than a technical milestone. It is a signal that public financial institutions are ready to move across the blockchain pilots and start integration of these systems,” said Michael Duttlinger, CASHLINK CEO.
Germany EWPG law, introduced in 2021, has prepared the way for security registered in the shared Ledger technology systems, which offers a legal framework for the release of digital bonds to one of the largest European capital markets.
While blockchain bonds remain a small portion of the general bond market, recent moves of institutions such as the NRW.Bank have suggested infrastructure and regulation frameworks. As it follows more public gives, it is a step towards reshaping how traditional capital markets work in digital weather.
