German development bank KfW is set to introduce a tokenized bond by 2024, following the successful issuance of a €20 million digital bond. This milestone was achieved through the use of Deutsche Börse’s Clearstream platform, which utilizes a centralized data storage system on its D7 platform.

The upcoming tokenized bond falls under the German regulation on digital securities, known as eWpG, which supports both centralized and decentralized digital repositories. KfW’s bond will fall into the category of cryptographic securities, which are classified as decentralized and operate on blockchain technology.

At a recent conference, KfW discussed its plans for the tokenized bond, with Union Investment, a prominent German asset management firm, expected to be a lead investor. Union Investment has been actively involved in investing in tokenized bonds, including those issued by the European Investment Bank, Siemens, and Metzler’s tokenized fund units.

KfW’s treasurer, Tim Armbruster, highlighted the value of these initiatives in terms of the knowledge gained. Previous experiences with token issuance have shown that the first one is often challenging, particularly from a legal perspective.

If KfW chooses to use Clearstream’s D7 platform again for this issuance, it would mark the first time a product is classified as a crypto security on the platform, which has previously been used exclusively for digital issuances in a centralized system.

Furthermore, Cashlink, a German startup specializing in the registration of cryptographic securities, recently published an analysis on the cost reduction of digital bonds. Cashlink has been actively involved in bond issuance and collaborated on Metzler’s recent tokenization of funds.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Europe
Countries	🇩🇪
Sentiment	neutral
Relevance Score	1
People	Tim Armbruster
Companies	Union Investment, Cashlink, Deutsche Börse, Clearstream, KfW
Currencies	None
Securities	None