Germany’s State-Owned Bank KfW Taps Boerse Stuttgart for Blockchain-Based Bond
Veronika Rinecker is based in Germany, studied international journalism and media management. She specializes in politics and regulation, energy, blockchain, and fintech. Since 2017, she has been...
Germany’s largest state-owned development bank Kreditanstalt für Wiederaufbau (KfW) has partnered with Boerse Stuttgart Digital, the digital asset brand of the Boerse Stuttgart exchange group, for its new blockchain-based digital bond.
According to the exchange’s August 12 announcement, Boerse Stuttgart Digital will provide wallet management and private key security services for the bond issuance and redemption process. The bond, scheduled for issuance in the coming weeks, will comply with Germany’s Electronic Securities Act (eWpG).
The bond issuance will also see both KfW and Boerse Stuttgart Digital participating in the European Central Bank’s (ECB) trials for settling blockchain-based financial transactions using central bank digital currency (CBDC). In June 2024, Boerse Stuttgart Digital successfully secured a spot in the second wave of these EU-wide tests, where it will also manage wallets and protect private keys.
“As one of the world’s largest and most active bond issuers, we are actively driving digitisation initiatives in the issuing and settlement process”, said Gaetano Panno, head of transaction management at KfW.
“The utilization 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”.
Since 2022, KfW has been actively pursuing digitization initiatives, which can be surprising for a state-owned bank traditionally associated with more conservative financial practices. Positioned as a pioneer in the issuance of
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