German development bank KfW has selected Boerse Stuttgart Digital as its infrastructure partner for its new blockchain-based digital bond.
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As part of the agreement, Boerse Stuttgart Digital will manage the wallets and secure the private keys throughout the issuance and redemption processes of the crypto security planned by KfW in the coming weeks.
The blockchain-based transaction will be executed by a consortium of bookrunners consisting of DZ Bank, Deutsche Bank, LBBW and Bankhaus Metzler, with Union Investments as lead investor.
Ulli Spankowski, Managing Director of Boerse Stuttgart Digital, says: “As a pioneer in digital assets, we want to significantly shape the infrastructure of the European digital market. The expansion of our offering for institutional clients and our participation in KfW’s upcoming blockchain-based digital bond mark an important step in the digital transformation of the financial sector.”
The KfW transaction will be part of the European Central Bank’s (ECB) EU-wide tests for the settlement of blockchain-based financial transactions against central bank money.
“The use of new technologies in the ECB trials allows us to technically process a delivery-versus-payment transaction and thus supports our digital learning journey,” says Gaetano Panno, Head of Transaction Management at KfW. “We are pleased that Boerse Stuttgart Digital is paving the way for a blockchain-based securities future together with KfW. As a fully regulated provider, Boerse Stuttgart Digital is a trusted partner for our next transaction.”
