The German development bank KfW has selected Börse Stuttgart Digital as an infrastructure partner for its new blockchain-based digital bond.
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As part of the agreement, Börse Stuttgart Digital will manage wallets and secure private keys during the issuance and redemption processes of the crypto security planned by KfW in the coming weeks.
The blockchain-based transaction will be carried out by a bookrunner consortium consisting of DZ Bank, Deutsche Bank, LBBW and Bankhaus Metzler, with Union Investments as lead investor.
Ulli Spankowski, Managing Director of Börse Stuttgart Digital, says: “As a pioneer of digital assets, we want to play a key role in shaping the digital European market infrastructure. The expansion of our offering for institutional customers and our participation in KfW’s next blockchain-based digital bond mark a milestone in the digital transformation of the financial sector.”
The KfW transaction is part of the European Central Bank’s (ECB) EU-wide tests to process blockchain-based financial transactions against central bank money.
“The use 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,” says Gaetano Panno, Head of Transaction Management at KfW. “We are pleased that Börse Stuttgart Digital, together with KfW, is paving the way to a future of blockchain-based securities. As a fully regulated provider, Börse Stuttgart Digital is a trustworthy partner for our upcoming transaction.”