DekaBank conducts green registered bond on the blockchain

Frankfurt – 06.12.2021

DekaBank has registered and settled a digital registered bond on its SWIAT securities platform. This puts another feature of the blockchain-based/DLT platform into operation. The Green Registered Bond, the proceeds of which are used exclusively in accordance with the International Capital Market Association (ICMA) Green Bond Principles, was negotiated and agreed upon on the firstwire marketplace between Vasakronan AB and DekaBank. In addition to the issuer and investor, registered bonds require a registrar. DekaBank fulfills this role. By introducing the role of the registrar, the technical groundwork for issuing and trading electronic securities has already been developed on SWIAT.
 
All assignments of the digital registered bond are recorded on Deka's SWIAT platform. Thus, when an assignment is made, the registrar is automatically informed within seconds and the register is updated without the need for any further intervention. Processes that would otherwise take one to two weeks are completed in seconds with SWIAT. "By transferring to the blockchain, the processes are not only much faster, but also more secure. Registered bonds become liquid and thus more attractive as an asset class. In addition, the register function already paves the way for the specific implementation of electronic and crypto securities," says Michael Cyrus, Head of Money/Forex & Repo/Lending at Deka, who played a key role in developing the platform.
 
Transactions in securities and other assets as well as payments can be processed efficiently and cost-effectively using SWIAT. Transfers take place directly between custodian banks without moving securities at CSD account level. This does not require tokenization, nor do the traditional chains of custody at the respective institutions need to be adapted. The Deka platform uses the existing processes and mechanisms of the participating institutions and can be integrated into existing infrastructures. For example, the firstwire marketplace is already connected to Deka's SWIAT platform. The market initiative launched by Deka is open to additional partners and aims to become the institutional standard for digital settlement. Participating providers of financial services can develop the SWIAT functions further and offer their own services and products on the platform.

DekaBank is the securities services provider of the German Savings Banks Finance Group (Sparkassen-Finanzgruppe). Together with its subsidiaries it forms Deka Group. With total customer assets of more than EUR 395 billion (as at 31/12/2021) and more than 5.2 million securities accounts, DekaBank is one of the largest securities services providers and real estate asset managers in Germany. DekaBank is a wholly owned subsidiary of the German Sparkasse savings banks and forms an integral part of the Sparkassen-Finanzgruppe.