Today Wirtschafts und Infrastrukturbank Hessen (WIBank), the Helaba owned German development bank, issued a registered bond on a public blockchain. It was settled in a delivery versus payment transaction (DvP) using the Bundesbank’s Trigger solution, which initiates settlement on the TARGET2 payment system. The €5 million transaction was part of the Eurosystem’s wholesale DLT settlement trials.
The simultaneous exchange of the digital bond and cash eliminates counterparty risk, and the use of central bank money reduces the credit risk.
“The experience gained from this project opens up new possibilities for the further development of existing financial products in conjunction with innovative technologies. This minimizes risks and optimizes processes for both us and our investors,” said Christian Forma, Head of Treasury at WIBank.
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