German Development Bank to Launch Tokenized Bonds
In preparation for its upcoming blockchain-based digital bond issuance, KfW, the largest development bank in Germany owned by the German states, has partnered with Boerse Stuttgart Digital (BSD) as its infrastructure provider.
According to a press release on Monday, KfW plans to issue the bond in the coming weeks under the German Electronic Securities Act (eWpG).
During the issuance and redemption processes, BSD will oversee the crypto wallets and secure the private keys.
The bond offering will be part of the European Central Bank’s trials for settling blockchain-based transactions using central bank money.
KfW’s Head of Transaction Management, Gaetano Panno, stated that as one of the world’s largest bond issuers, they are committed to driving digitalization initiatives in the bond issuing and settlement process.
