German State Bank KFW Preparing $1 Billion Blockchain-Backed Bond Issue

German government-owned development bank Kredittanstalt fuer Wiederaufbau (KFW) Financial Group is preparing to issue a blockchain-based digital bond, according to Bloomberg. The bank provides development aid and financing to the housing, SME, export, import, and foreign investment sectors, similar to South Korea's Export-Import Bank and Korea Development Bank. “We are pursuing a blockchain-based bond issue to attract as many investors as possible,” said KFW Financial Group. We believe that digital assets will be advantageous in terms of efficiency and scalability,” said KFW Financial Group. “A preparatory phase will take place over the next few weeks to familiarize investors with blockchain-based bond trading. During this time, KFW Financial Group will hold discussions with European institutional investors. Union Investment, which has experience in investing in crypto securities, will serve as the anchor investor. In addition, DZ Bank, Deutsche Bank, LBBW and Bankhaus Metzler will jointly act as book runners, the banks responsible for formally soliciting investors in a financial instrument or selling bonds. Cashlink Technologies GmbH has been selected as the registrar for the crypto securities. The bonds will have a maturity date of December 2025 and a minimum bond size of €100 million ($1.08 billion), according to a person familiar with the matter.”