NRW.BANK, a German state-owned development bank, has issued a €100 million ($116.7 million) bond on the Polygon blockchain, marking a significant milestone in the public sector’s adoption of digital securities.
This bond, with a two-year maturity, was issued under Germany’s Electronic Securities Act (eWpG), which legally enables the issuance and registration of bonds entirely on blockchain networks, eliminating the need for physical certificates.
NRWBANK, Germany’s largest regional development bank, has tokenized its first fully digital bond, with support from leading financial institutions like @DeutscheBank, @dzbank, and @DekaBank.
Polygon will serve as the rails for the EUR 100 million bond, registered via Cashlink as… pic.twitter.com/37jqqQpz8F
— Polygon (@0xPolygon) July 10, 2025
The issuance was facilitated by Cashlink Technologies, a BaFin-licensed crypto securities registrar, leveraging Polygon’s network as the underlying blockchain infrastructure. Institutional investors, including Deutsche Bank, DZ BANK, and DekaBank, participated as joint lead managers, reflecting strong interest in traditional finance in blockchain-based assets.
Michael Duttlinger, CEO of Cashlink, described the bond as “more than a technical milestone,” highlighting that it signals readiness among public financial institutions to move beyond pilot projects and integrate blockchain systems at scale.
Germany’s eWpG law, introduced in 2021, has provided a clear regulatory framework that encourages tokenized finance. This has spurred multiple digital bond issuances by German institutions such as KfW, DZ BANK, and Siemens, positioning Germany as a European hub for regulated blockchain finance.
Polygon’s role in this issuance coincides with its upcoming technical upgrade, Heimdall 2.0, which aims to reduce transaction finality times to five seconds and enhance network stability. This upgrade underscores the maturing blockchain infrastructure supporting tokenized securities.
Digital bonds offer advantages including real-time tracking, faster settlements, and reduced administrative costs, making them attractive to public-sector issuers. NRW.BANK’s issuance is the first fully digital bond of its kind for the bank, demonstrating growing confidence in the role of blockchain in regulated capital markets.
Meanwhile, Deutsche Bank is set to launch a crypto custody service by 2026, demonstrating its increasing involvement in the crypto sector. This initiative aligns with a broader trend of crypto adoption among German financial institutions. The bank’s strategy includes collaborations with Bitpanda Technology Solutions and Taurus, alongside its interest in stablecoins, tokenized deposits, and its proprietary Ethereum-based blockchain.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
