DekaBank Issues Digital Bond Without Intermediaries in ECB Trials
DekaBank announced on July 11 that it issued a digital bond directly to Melzer Bank using the European Central Bank’s Distributed Ledger Technology (DLT) settlement trials.
According to a recent report by Ledger Insights, DekaBank issued the digital bearer bond without using a central securities depository as part of the ECB’s wholesale DLR settlement trials.
Germany’s electronic securities legislation and the Bundesbank’s trigger solution enabled the transaction, allowing a seamless delivery versus payment settlement.
The report suggested that Germany’s eWpG legislation facilitates the issuance of crypto securities without traditional intermediaries but mandates the involvement of a BaFin-regulated crypto registrar.
This registrar acts as a legal entity responsible for maintaining the registry of security holders when the issuance is conducted on a blockchain.
DekaBank, recently licensed as the first bank to serve as a crypto registrar under this framework, managed the registry for this digital bond issuance. This role could ensure an updated and accurate list of bondholders is maintained.
“Blockchain-based securities transactions can be carried out faster and more transparently than the classic settlement infrastructure,” said DekaBank Head of Treasury Silvio Lenk. “Payment transactions with digital central bank money are essential for this and close the previous gap. The ECB’s step to offer solutions here will enable further development of this market. For us, it is a must to participate in this.”
The German government has been making large Bitcoin transfers to exchanges. On July 11, it transferred over 1,125 Bitcoins to exchanges, moving 375 BTC ($21.8 million) each to Bitstamp, Kraken, and Coinbase.
