Germany’s state-owned bank, KfW, is set to launch its first digital bond using blockchain technology in a move to modernize traditional financial institutions. The bank aims to attract more investors by offering a digitalized bond that will increase efficiency and scalability. KfW plans to engage with European institutional investors before the bond’s launch, with Union Investment as an anchor investor. Despite the digital approach, traditional payment processes will be maintained, and the transaction is expected to be completed in the summer. It is unclear whether KfW will use public blockchain networks or develop a private solution for digitization. DZ Bank, Deutsche Bank, LBBW, and Bankhaus Metzler will be involved as joint bookrunners, with Cashlink Technologies serving as the crypto securities registrar. The bond is expected to have a minimum size of €100 million ($108 million) and mature in December 2025.
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