NRW.BANK, a German state bank, has issued a €100 million bond on the Polygon blockchain, marking an important step for digital securities integration in the public sector.
Bond Features
The bond, having a two-year maturity, was issued under Germany’s Electronic Securities Act (eWpG), allowing bonds to be wholly issued and registered on blockchain networks, eliminating the need for physical certificates.
Blockchain's Role and Participants
The bond issuance was facilitated by Cashlink Technologies, a BaFin-licensed crypto securities registrar. Polygon serves as the underlying infrastructure for the bond, registered via Cashlink. Institutions including Deutsche Bank, DZ BANK, and DekaBank participated as joint lead managers, reflecting the interest of traditional finance in blockchain assets.
Prospects for Digital Bonds in Germany
According to Michael Duttlinger, CEO of Cashlink, this bond is not just a technical milestone but signals readiness among public financial institutions to integrate blockchain. The eWpG law, introduced in 2021, provides a clear regulatory framework encouraging tokenized finance, boosting multiple digital bond issuances by German institutions.
The NRW.BANK issuance is the first fully digital bond of its kind for the bank, underscoring the growing confidence in using blockchain technologies in regulated capital markets.
