A consortium of leading German banks, including DZ Bank, LBBW, Deutsche Bank, and Bankhaus Metzler, acted as bookrunners for the bond. This broad syndicate ensured participation from cooperative banks, public banks, and private commercial banks – three pillars of the German banking system. Anchor investors such as Berliner Volksbank, Deka Bank, and Union Investment also contributed significantly to the bond’s success.
“Digitalisation of the financial industry plays a crucial role in the international competitiveness of the European financial market,” said Melanie Kehr, Member of the Executive Board of KfW Group. “One of our most important goals is to make an active contribution to the development of the market for digital securities in Germany and Europe”.
Bundesbank Tech for Digital Bonds
For their next bond for ECB trials, KfW and Boerse Stuttgart Digital will leverage the so-called “Trigger Solution,” a technical solution developed by the Bundesbank, Germany’s central bank, that connects blockchain-based systems with traditional payment systems. This solution enables a seamless connection between blockchain-based securities platforms and established European payment systems such as Target2. As a result, digital securities, such as digital bonds, can be processed efficiently and securely.
Other leading financial institutions, including Clearstream, Deka Bank, and DZ Bank, have already successfully implemented the Bundesbank solution, demonstrating the growing interest of the financial industry in such interoperable systems.