Government-owned KfW bank has issued digital bonds before, including a €4 billion one value dated yesterday. However, these used a central securities depository (CSD). The German Electronic Securities Act (eWpG) also supports a distributed registry without a CSD, which it refers to as ‘crypto securities’. Now KfW is issuing a €100 million ($108m) blockchain bond on the Polygon blockchain, value dated 4 July.
KfW claims that the bond with a 3.125% coupon and 10 December 2025 maturity is the first syndicated crypto security in Germany.
The market for digital bonds isn’t yet mature but has come a long way since the European Investment Bank issued a €100m blockchain bond on Ethereum three years ago. Demand was so thin that Union Investment took up the entire allocation.
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