Dutch bank ABN Amro has successfully conducted a digital green bond offering, utilizing Polygon’s layer 2 Ethereum scaling technology to raise €5 million. The green bond was issued as an ERC3643 token through Tokeny, a platform that uses Polygon to enable financial institutions to issue and manage securities and financial instruments.
ABN AMRO secured the funding for real estate investor Vesteda, which intends to use the funds to refinance “green assets” as part of its green finance framework. Green bonds are a means of raising funds for sustainable projects or companies that have a positive environmental impact.
The bank provided further details of the green bond, revealing that DekaBank took ownership of tokens representing its €5 million investment after payment was made. ABN AMRO utilizes Fireblocks to manage private keys to the digital bond.
This is not ABN AMRO’s first foray into digital bonds issuance. The bank previously purchased and resold a digital bond from the European Investment Bank (EIB). Olivier Aartsen, the bank’s head of debt capital markers, expressed ABN AMRO’s intention to support multiple digital bond offerings in the future.
Martijn Siebrand, ABN Amro’s digital asset lead, highlighted the benefits of using the ERC3643 standard, stating that it allows the bank to embed compliance rules into digital bonds. He added, “They can even seamlessly and compliantly interact with other applications on the public network thanks to native interoperability.”
Blockchain technology is increasingly being adopted by mainstream financial institutions for various use cases, including the issuance and management of digital bond offerings. Siemens made headlines in February 2023 with its $64 million digital bond, which received direct investment from DekaBank, DZ Bank, and Union Investment. The European Investment Bank also issued a blockchain-based digital bond in June 2023, powered by environmentally-incentivized node infrastructure.
The EIB’s digital bond platform, developed in collaboration with Skandinaviska Enskilda Banken (SEB) and Credit Agricole CIB, aims to facilitate the issuance, trading, and settlement of bonds digitally.
Sources:
– ABN AMRO: [ABN AMRO Registers First Digital Green Bond on the Public Blockchain](https://www.abnamro.com/en/news/abn-amro-registers-first-digital-green-bond-on-the-public-blockchain)
– CoinTelegraph: [EIB Settles €100 Million Digital Bond on Private Blockchain](https://cointelegraph.com/news/eib-settles-100-million-digital-bond-on-private-blockchain)
– CoinTelegraph: [Siemens Issues $60 Million Digital Bond on a Public Blockchain](https://cointelegraph.com/news/siemens-issues-60m-digital-bond-on-a-public-blockchain)
– CoinTelegraph: [European Investment Bank Issues Blockchain Bond](https://cointelegraph.com/news/european-investment-bank-issues-blockchain-bond)
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I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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