KfW is among the pioneers in helping to develop market standards for future digital bond issuances in Europe. In coordination with key market participants, KfW has produced a comprehensive report to highlight the lessons learned after its two successful digital bond issuances in 2024 under the ECB's exploratory work. With digital bonds having significant potential to increase efficiencies in financial markets, Scope analysts Eiko Sievert and Alvise Lennkh-Yunus, CFA are very glad to have contributed to this work. Giacomo Barisone, PhD #digitalbonds #DLT #CapitalMarkets #Digital #Blockchain #FinancialInnovation #Digitalisation
🚀 𝗔𝗱𝘃𝗮𝗻𝗰𝗶𝗻𝗴 𝗧𝗼𝘄𝗮𝗿𝗱𝘀 𝗮 𝗦𝗰𝗮𝗹𝗮𝗯𝗹𝗲 𝗗𝗟𝗧-𝗕𝗮𝘀𝗲𝗱 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁 🚀 KPMG Financial Services and KfW have released an analysis of the market maturity of the DLT-based capital market in Germany and Europe. 💡 Based on KfW’s first blockchain-based digital bond issuances in summer 2024, the report compiles insights and practical experience from involved stakeholders to illustrate the necessity and practical implementation of DLT-based transactions. The report emphasizes the importance of establishing a scalable DLT-based market for the future competitiveness of Germany and Europe in the global financial market. 📈 Key findings from the analysis reveal that: 🔗 Distributed ledger technology (DLT) has the potential to significantly automate existing capital market processes. 🔗 The combination of public and private blockchains enables highly efficient transaction settlements. 🔗 The German Electronic Securities Act (#eWpG) and the ECB exploratory work provide a solid foundation for further development. 🔗 A systematic development and deepening of digitalisation know-how is essential for the competitiveness of Germany and Europe. "Our aim is to leverage our unique market position in order to bring together a large number of market players and in turn help to ensure that the German and European capital markets remain competitive in the future", explains KfW Group Treasurer Tim Armbruster. 🤝 Jens Siebert, Partner, KPMG Financial Services, adds: "The use and integration of DLT into capital market processes offers ample opportunities for the financial market and can make transactions more efficient and secure. It is therefore important that institutes such as KfW go ahead in this area." Together, we can pave the way for a robust capital market landscape in the digital age. 🌍 The report is available on the respective websites of KPMG and KfW. Find the paper here: 👉🏻 https://lnkd.in/ey2vvZqd (Full Version in German only, Executive Summary in English available, download available) A big thank you to all involved parties, including Bankhaus Metzler, Boerse Stuttgart Digital, Cashlink, Deutsche Bank, DZ BANK AG, HAUCK AUFHÄUSER LAMPE, LBBW, Linklaters, Union Investment as well as Scope Group and S&P Global. #DLT #CapitalMarkets #Digital #Blockchain #FinancialInnovation #Digitalisation