State development bank NRW.BANK has issued its first digital bond, a two-year €100 million issuance on the Polygon blockchain. The bond is a ‘crypto security’ under Germany’s Electronic Securities Act (eWpG), which means it used a crypto registrar Cashlink rather than a central securities depository.
Deutsche Bank, DZ BANK and DekaBank acted as joint lead managers, with the issuance attracting strong interest from institutional investors. Yesterday the BIS published a bulletin on blockchain-based government bonds, finding that they attract tighter bid-ask spreads, indicating greater liquidity.
Cashlink CEO Michael Duttlinger said that the latest issuance “shows the increasing trust in blockchain-based capital market infrastructure and reinforces our role as a key enabler for secure, compliant, and scalable tokenized financial instruments.” The company also observed that some institutions are progressing from one off pilots to fully integrate with blockchain technology.
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