NRW Bank, the Development Bank that is owned by the German state of North Rhine-Westphalia, has spent € 100 million in blockchain-based bonds, making it one of the largest government movements to digital effects in Europe.
The two-year bond was issued on the Polygon (Pol) Blockchain and registered via the infrastructure of Cashlink Technologies, a cryptocurrency effect registrar with a permit from the financial regulator of Germany, Bafin.
This is the first issue of NRW Bank as a fully digital, crypto protection under Germany’s Electronic Securities Act (EWPG), so that bonds can only exist on the blockchain without the need for physical certificates.
Deutsche Bank, DZ Bank and Dekabank participated in the issue as joint chief managers.
“This is not just a technical milestone; it is a sign that public financial institutions are now ready to go beyond blockchain pilot projects and to integrate these systems on a scale,” said CEO of Cashlink, Michael Duttlinger.
The EWPG Act, which came into force in 2021, offered the legal basis for registering effects on distributed ledger technologies (DLT) in Germany, which has one of the largest capital markets.
*This is not investment advice.