Germany's state-owned development bank NRW.BANK has officially entered the blockchain-based bond issuance market.
According to CoinDesk on the 10th (local time), NRW.BANK announced that it has issued blockchain bonds worth a total of 100 million euros (approximately $108 million). This is the first blockchain bond issued by NRW.BANK, registered on the Polygon blockchain through Cashlink, a cryptocurrency securities registration agency regulated by the German Financial Supervisory Authority (BaFin).
This issuance aims to utilize blockchain technology to streamline the issuance, registration, and transfer processes, and to reduce costs and enhance transparency. The Polygon blockchain is an Ethereum-based scalability solution known for its low fees and fast transaction processing speeds.
NRW.BANK explained that this is part of their strategy to "increase capital market accessibility and accelerate digital transformation by leveraging innovative financial technology". Cashlink has already been supporting blockchain-based bond issuance with multiple German financial institutions and is a cryptocurrency securities registration agency officially authorized by BaFin.
Blockchain bonds have simplified issuance and settlement processes compared to traditional bonds, and demand is gradually increasing, especially in the institutional investor market. This case is significant as it represents an official adoption of blockchain technology by a German state-owned financial institution.
