Yesterday it was announced that German state-owned development bank KfW issued a digital bond on the Deutsche Börse D7 post-trade platform. The issuance was executed by Clearstream, the Deutsche Börse post-trade subsidiary. Plans were revealed to use D7 in other jurisdictions starting with Luxembourg.
Until the new German eWpG legislation was passed in mid-2021, all securities had to have paper-based certificates. In contrast, with D7, the securities are natively digital. Yesterday’s digital bond issuance involved the use of Digital Asset’s DAML smart contract language for the workflow.
Key benefits of issuing digital securities are speeding up the issuance process, enabling straight through processing, and reducing the amount of work involved.
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