Martijn Siebrand of ABN AMRO made the case for using public blockchain for tokenization. He was talking as part of a Tokeny webinar, where Tokeny provides a solution that layers permissions and compliance for public blockchain tokens using smart contracts. One of the most eye opening comments was that the first ABN AMRO digital bond experience required interacting with 180 colleagues, much of it involving education. By the third project, the figure was down to 20 people. The need for education and to work closely with regulators was mentioned several times.
ABN AMRO has run various trials on private and public blockchain networks, and chose the latter. It started with a project involving a secondary trade of the European Investment Bank’s first digital bond on Ethereum. The second initiative was a €450,000 bond issuance for APOC Aviation using the Stellar blockchain. Late last year it worked with real estate firm Vesteda on a €5 million green bond issuance on the Polygon blockchain.
For digital bond issuance, one of the key advantages is automation and removing several manual processes, including the back and forth of book building. There’s also the potential for speedy and atomic settlement and a reduction in reconciliations. Additionally, it’s possible to provide new functionality for investors.
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