In a groundbreaking move for the digitalization of finance, KfW, the German development bank, has issued its first blockchain-based security under the Electronic Securities Act (eWpG), valued at €100 million.
This major transaction leverages Polygon’s blockchain infrastructure, with crypto custody managed by Hauck Aufhäuser Digital Custody, a subsidiary of Hauck Aufhäuser Lampe Privatbank. The Frankfurt-based company Cashlink is responsible for tokenization and registry management.
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According to the press release, the bearer bond will have a term of about one year, making it one of the first crypto securities issued by the German banking sector.
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“We’re proud to be chosen by KfW as the licensed crypto custodian for this pioneering transaction,” says Simon Seiter, Head of Digital Assets at Hauck Aufhäuser Lampe. Since 2021, Hauck Aufhäuser Digital Custody has been supporting custodian banks in securing private keys for blockchain-based securities transactions.
