The banks have mapped the entire lifecycle of a digital bond on public blockchain, with DZ Bank acting as issuer and KfW as investor.
DZ Bank and KfW have issued a crypto security pursuant to the German Electronic Securities Act based on a smart bond contract, making a contribution to the further development and standardisation of digitally issued securities, they announced. Smart bond contracts are algorithms that coordinate the interaction of all involved parties according to clearly defined conditions and autonomously and standardly control the processes throughout the entire lifecycle of a digital security