German state-owned bank KfW launches €4 billion digital bond
Germany's state-owned bank KfW has issued a €4 billion ($4.28 billion) digital bond with an interest start date of July 2. The benchmark bond is the second digital bond issued by Clearstream using the Deutsche Börse D7 digital securities platform. It is a three-year bond with a coupon rate of 2.75%. This is the largest digital bond issuance to date, followed by the $756 million green bond issued in Hong Kong in February. However, some may argue that they are not the same, as the ledger used for the KfW bond is completely centralized, despite being supported by Digital Asset's DAML smart contract. In contrast, the Hong Kong bond was issued on the DLT network of HSBC Orion. Although the Central Moneymarkets Unit (CMU) of Hong Kong's monetary market is the central securities depository (CSD) responsible for issuance, other direct participants of DLT can automatically clear and settle.
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