Natixis Pfandbriefbank issues first digital registered covered bond on the SWIAT blockchain
On August 28th 2024, Natixis Corporate & Investment Banking, via Natixis Pfandbriefbank, issued its first digital registered covered bond on the SWIAT blockchain in Germany. With an issuance volume amounting to EUR 100mn, DekaBank was an investor an also acted as registrar and paying agent.
SWIAT, a Frankfurt-based fintech and joint venture between DekaBank, LBBW and SC Ventures, provided the software for the tokenization of the registered covered bond and the private, permissioned and Basel-compliant blockchain as a settlement network*.
We are delighted to bring the proven registered covered bond to the market in digital format together with DekaBank and are convinced that these first digital format bonds will mark the beginning of an accelerating development of digital securities.
Hansjörg Patzschke
Chairman of the Board of Natixis Pfandbriefbank AG
Distributed ledger technology and permissioned blockchain have the potential to significantly alter the lifecycle of bonds, from issuance, trading to settlement, and impact the functioning of financial markets.
Previously, the issuance of a registered covered bond was required to be paper-based and involved numerous manual steps, which are both time-consuming and prone to errors. The digital transformation of the issuance process enables same-day settlement and optimised security standards. The improved tradability and lower fulfilment risk make the product more attractive to investors.
As the digital asset revolution continues to progress and the world prepares for the next generation of financial markets, this milestone transaction is a testament to Natixis Corporate & Investment Banking’s ongoing commitment to pioneering the tokenization of assets.
As we continue to explore the vast potential of digital securities and blockchain technology, we are more determined than ever to make tangible advances in the digital asset world.
Leveraging on its Tech Hub, Natixis CIB is committed to supporting clients in their tech transformation by providing expertise and solutions, particularly in digital assets. The focus is on helping issuers and investors navigate the digital assets space and being a key partner to move forward in tokenization.
*A private blockchain network like SWIAT is also a decentralised peer-to-peer network. However, it is coordinated by an organisation. The organisation oversees access to the network and carries out joint protocol changes with the participants. Permissioned means that only authorised participants can take part in the network and its transactions.
