DekaBank issues first crypto securities on the blockchain
Frankfurt – 14.12.2021
DekaBank has issued its first crypto securities, marking the start of its business activities to maintain a crypto securities register. The bearer bonds were issued via Deka's blockchain-based securities platform SWIAT. The buyers of the bonds are Bankhaus Metzler and Hauck & Aufhäuser.
A crypto security is a form of electronic security. Unlike traditional securities, a paper certificate is no longer required for issuance. Since the German electronic securities act (eWpG) came into force in June 2021, an entry in an electronic register has been sufficient. However, rights and obligations are identical for traditional and electronic securities. Crypto securities are entered in a decentralized manner in a blockchain-based crypto securities register. The central securities register is thus no longer required. The individual parties therefore enter into a direct exchange, mostly based on distributed ledger technology (DLT) without the involvement of a central securities depository.
The data is logged on Deka's SWIAT securities platform and stored in a tamper-proof manner. Martin K. Müller, Member of the Board of Management of DekaBank: "Digital assets are the future. They speed up processes and at the same time are more transparent and less expensive than traditional securities." Data and history can be tracked by participants at any time, he said.
"With the first crypto securities issue, DekaBank has taken another step towards digitalization and additionally expanded its product portfolio in the funding market," says Silvio Lenk, Head of Treasury at DekaBank.
Sven Klein, Head of Fixed Income ALM at Metzler Capital Markets, says: "We attach great importance to electronic securities in the future and, as Bankhaus Metzler, are pleased to be involved in this development at an early stage."
Christian Rüffert, Head of Treasury Hauck & Aufhäuser, explains: "Following the first secured securities lending transaction between DekaBank and Hauck & Aufhäuser in December 2020, the investment in an eSecurities of DekaBank now represents another use case for the SWIAT platform and the technology behind it. We are very pleased to have been able to contribute to this milestone."
Deka's SWIAT securities platform expands the technical capabilities of participating institutions and can be integrated into existing infrastructures thanks to its modular design. The market initiative launched by Deka is open to additional partners and aims to become the institutional and digital settlement standard. Participating financial service providers can further develop the platform functions and offer their own services and offerings 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.