Government-owned development bank KfW is planning to issue its second DLT-based bond in the coming weeks. Today Boerse Stuttgart Digital announced it will provide the wallet and private key infrastructure for the planned digital bond issuance and redemption. KfW previously announced plans for its second DLT bond, which will settle in central bank money through participation in the ECB’s wholesale DLT settlement trials.
In July KfW issued a €100 million ($108m) DLT bond on the Polygon blockchain in compliance with the German Electronic Securities Act (eWpG). It was conservatively managed, with DZ Bank acting as the collective registered holder on behalf of all investors. KfW has also issued other digital bonds using a central securities depository (CSD), including a €4 billion issuance in July.
“As one of the world’s largest and most active bond issuers, we are actively driving digitalisation initiatives in the issuing and settlement process,” said Gaetano Panno, Head of Transaction Management at KfW. “The utilisation of new technologies as part of the ECB trials enables us to technically process a ‘delivery vs. payment’ transaction and thus supports our digital learning journey.”
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