According to reports, the German state-owned bank KfW is planning to launch a digital bond based on blockchain technology. The bank has chosen the Stuttgart Digital Exchange (BSD) as its infrastructure provider and partner to prepare for the upcoming launch of the blockchain-based digital bond. It is reported that KfW plans to issue the bond in the next few weeks under the German Electronic Securities Act (eWpG). BSD will oversee the encrypted wallets and protect private keys during the issuance and redemption process. This upcoming service will be part of the European Central Bank’s experiment with central bank digital currency settlement using blockchain technology.
