German development bank KfW has chosen Boerse Stuttgart Digital as its infrastructure partner for an upcoming blockchain-based digital bond.
As part of the agreement, Boerse Stuttgart Digital will oversee wallet management and secure private keys throughout the issuance and redemption phases of the planned crypto security, set to launch in the coming weeks.
The blockchain transaction will be executed by a consortium of bookrunners that includes DZ Bank, Deutsche Bank, LBBW, and Bankhaus Metzler, with Union Investments participating as an anchor investor.
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.”
This KfW transaction will also be part of the European Central Bank’s (ECB) EU-wide tests aimed at settling blockchain-based financial transactions with central bank money.
Gaetano Panno, head of transaction management at KfW, stated, “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.”