Boerse Stuttgart Digital, an infrastructure provider for cryptocurrencies and digital assets in Europe, announced it will be supplying the technical infrastructure for KfW for its new blockchain-based digital bond.
“The expansion of our offering for institutional clients and our involvement in KfW’s next blockchain-based digital bond mark a milestone in the digital transformation of the financial sector,” said Ulli Spankowski, managing director of Boerse Stuttgart Digital, in a statement.
The digital unit’s services have been expanded to include wallet provision and private key security in relation to tokenized securities, and it targets users such as banks, brokers, and asset managers in Europe.
Boerse Stuttgard is one of the stock exchange operators in Europe that is part of the second wave of the European Central Bank’s (ECB) EU-wide tests for the settlement of blockchain-based financial transactions against central bank money, in which it also provides wallets and ensures the security of private keys.
Through the KfW transaction, Boerse Stuttgart Digital, with its new service, is also participating in a use case with central bank money payment.
“As one of the world’s largest and most active bond issuers, we are actively driving digitalization initiatives in the issuing and settlement process. The utilization of new technologies as part of the ECB trials enables us to technically process a “delivery vs. payment” transaction and thus supports our digital learning journey,” said Gaetano Panno, head of Transaction Management at KfW, in a statement.