DZ BANK, acting as issuer, and KfW, as investor, have completed a crypto security issuance under Germany’s Electronic Securities Act (eWpG) using a Smart Bond Contract (SBC).
The transaction mapped the full lifecycle of a digital bond on blockchain infrastructure, from initial liquidity demand to issuance and settlement.
Smart Bond Contracts (SBCs) use algorithms to coordinate participants’ actions based on predefined conditions, automating processes across the bond’s lifecycle.
They run on distributed ledger technology (DLT), which provides a shared, tamper-resistant record of transactions and enables automatic execution, such as triggering payments when conditions are met.
“This transaction marks a genuine innovation in the financial market,”
said Matthias Bergner, Head of Treasury at DZ BANK.
“Together with our offerings in the field of digital assets, it underscores our leading role in the German banking sector within the entire digital securities universe.”
KfW has previously participated in digital bond issuances both as issuer and investor.
The bank views such transactions as part of its broader efforts to support financial market digitalisation and test new infrastructure.
“We were pleased to participate in this project, as this transaction represents another milestone on our learning journey towards Europe’s digital sovereignty,”
said KfW Treasurer Tim Armbruster.
“To keep the German and European financial markets competitive, we need scalable digital products.”
The parties conducted the transaction without a central securities depository. Required service providers contributed data directly to the DLT system.
Blockchain served as the primary communication layer, ensuring that transaction data remained immutable and visible to all participants.
The pilot, executed on the Polygon blockchain, included automated ISIN assignment by WM Datenservice and digital registry services by Cashlink.
The Deutsche Bundesbank’s trigger solution carried out settlement, linking blockchain processes with central bank balances.
The transaction completed in around one hour, compared with the approximately five days required for a traditional bond.
Featured image credit: Edited by Fintech News Switzerland, based on image by freepik
The post DZ BANK and KfW Complete German Digital Bond Issuance via Blockchain appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.
Full story here Are you the author?
You Might Also Like
Crypto, Neobanks, AI Agents Among the Top Fintech Trends of 2026
2026-03-18
In 2026, neobanks and buy now, pay later (BNPL) leaders will continue expanding into full-spectrum consumer banking firms, gaining significant ground over incumbent banks.
Simultaneously, cryptocurrency giants are broadening their institutional offerings to capitalize on banks’ growing appetite for digital assets and tokenization, according to CB Insights.
These predictions stem from research across more than 23,000 fintech startups. The study examined hiring momentum, commercial maturity, business relationships, and Mosaic scores, a metric which measures the health and growth potential of private tech companies, to identify which companies and sectors are making headway.
The findings highlight a profound reshaping of financial services in 2026. In addition to the maturation of the
Prediction Markets Set to Surge, Fueled by Clearer Regulations, Sector Expansion, and Blockchain Integration
2025-11-24
Prediction markets have grown rapidly, driven by regulation, a dynamic fundraising landscape, and rising mainstream adoption, especially in sports.
That momentum is projected to continue as major financial institutions enter the space, and as new markets and decentralized finance (DeFi) technologies push the sector to new heights, according to a new report by Sporting Crypto, a sports and blockchain media and intelligence company.
Prediction markets: an overview
Prediction markets are marketplaces designed to aggregate information and forecast future events by allowing participants to buy and sell contracts based on the outcome of these events. These platforms essentially allow users to “bet” on what will happen, with prices reflecting the collective belief about the probability of each
German Blockchain Funding Falls to Four-Year Low Despite $9.3B Venture Growth
2025-11-19
CV VC, together with the Frankfurt School Blockchain Center, has released the German Blockchain Report 2025, analysing venture capital activity in Germany’s blockchain sector from Q3 2024 to Q2 2025.
While overall German venture funding rose, blockchain-specific investment declined, representing the lowest share of national venture activity in four years.
Globally, venture funding reached US$411.9 billion across 21,872 deals, up 19.5% year-on-year, although deal counts fell 14.2%.
North America accounted for 63.1% of global funding.
Europe raised US$59.9 billion across 5,708 deals, down 8.7% in funding and 20.9% in deal volume, with a median deal size of US$2.5 million, below the global median.
Germany attracted US$9.3 billion across 522 deals.
Funding was up 10.4% but deal numbers fell
Societe Generale Completes First US Digital Bond Using Broadridge Tokenisation
2025-11-19
Broadridge has announced that Societe Generale has completed its first digital bond issuance in the US using Broadridge’s tokenisation capability.
The bonds were issued by Societe Generale-FORGE, the bank’s subsidiary focused on digital assets.
The transaction demonstrates how institutions can use tokenisation and permissioned blockchain technology to enable instant settlement and greater transparency while remaining compliant with traditional capital markets practices.
Broadridge’s tokenisation capability allows firms to issue, trade, and manage securities in digital form, with features such as privacy controls, credential management, and direct investor ownership.
For this transaction, Broadridge and Societe Generale-FORGE used IntellectEU’s Catalyst Blockchain Manager to operate their
Binance Introduces QR Code Crypto Payments in Argentina
2025-11-03
Binance has introduced a new QR code payment feature in Argentina, enabling users to pay for products and services using cryptocurrencies directly from the Binance app at merchants that accept QR payments.
Transactions are processed instantly, securely, and without fees.
Andrés Ondarra, Binance General Manager for Argentina and the Southern Cone, described the launch as “a leap toward true financial freedom,” adding that it provides “speed, security, and flexibility to use your digital assets at any merchant, without fees or complications.
It is the simplest and most practical way to integrate cryptocurrencies into everyday life.”
To make a payment, users scan a merchant’s QR code with the Binance app, select a cryptocurrency, and confirm the transaction.
Binance automatically converts the
Tags: Blockchain,Featured,Germany,newsletter
