Germany’s largest development bank, KfW, has chosen Boerse Stuttgart Digital as its infrastructure partner for a new blockchain-based digital bond.
As part of the agreement, Boerse Stuttgart Digital will provide the technical infrastructure for KfW’s new blockchain-based digital bond. This includes managing wallets and securing private keys during both the issuance and redemption of the crypto security, in compliance with the German Electronic Securities Act.
At the end of June, the infrastructure provider announced its successful application as a stock exchange operator for the second phase of the European Central Bank‘s (ECB) EU-wide tests on blockchain-based financial transactions involving central bank money.
In these tests, Boerse Stuttgart Group will also handle wallets and secure private keys. Through the KfW transaction, Boerse Stuttgart Digital will apply its new service in these “trials” by participating in a real-world central bank money use case.
Gaetano Panno, Head of Transaction Management at KfW, said: “As one of the world’s largest and most active bond issuers, we are actively driving digitisation initiatives in the issuing and settlement process. The utilisation of new technologies as part of the ECB trials enables us to technically process a ‘delivery vs. payment’ transaction and thus supports our digital learning journey.
“We are pleased that Boerse Stuttgart Digital is paving the way for a future of blockchain-based securities together with KfW. As a fully regulated provider Boerse Stuttgart Digital is a trusted partner for our upcoming transaction.”
Boerse Stuttgart Digital has held an important role in the world of digital assets and now further strengthens its position by offering wallet management and private key security for tokenized securities.
This expansion aims to solidify its status as a fully regulated, all-in-one provider in the cryptocurrency sector and marks a significant step in blockchain finance.
Ulli Spankowski, Managing Director of Boerse Stuttgart Digital, commented: “As a pioneer in digital assets, we aim to significantly shape the digital European market infrastructure. The expansion of our offering for institutional clients and our involvement in KfW’s next blockchain-based digital bond mark a milestone in the digital transformation of the financial sector.”
Last month, the Eurozone’s first-ever sovereign digital bond issuance took place in the Republic of Slovenia, with BNP Paribas playing a key role in arranging and settling the transaction. This groundbreaking issuance was facilitated by Banque de France’s tokenized cash solution, part of the ECB’s wholesale central bank money experimentation programme