ABN AMRO Issues First Tokenized Corporate Bond

Amsterdam, Netherlands — ABN AMRO, one of the largest banks in the Netherlands, has made history by becoming the first bank in the Netherlands to register a digital bond on a public blockchain as well as the first bank in Europe to issue a bond on the public blockchain for a Midcorp client. The bond, which was issued to a select group of investors, raised €450,000 on behalf of aircraft part-out company APOC, one of the bank’s commercial clients.

The digital bond tokens are considered security tokens, which are digital assets that are automated to comply with securities regulations, and it was issued under the EU Regulation. The entire process of originating, issuing, and now transferring the bond is digitally automated on the Stellar Network. Ownership is recorded on the blockchain in the form of tokens that the investors acquired after they had paid for the bond. ABN Amro was assisted by Bitbond and Fireblocks, two prominent blockchain infrastructure companies, in the issuance and custody of the bond security tokens.

This innovative issuance marks a major milestone in the world of tokenization and blockchain, as it demonstrates the potential of these technologies to revolutionize traditional financial systems. The tokenized bond not only simplifies and streamlines the bond issuing process, but also increases transparency and security for investors. ABN AMRO had gained previous experience in digital bonds from buying and reselling the European Investment Bank’s public blockchain bonds. This new tokenized bond offering represents the bank’s first public issuance of a digital bond using blockchain technology.

ABN AMRO’s decision to issue a tokenized bond on a public blockchain is driven by the growing recognition of the potential for blockchain and digital assets in the bond market. This comes as more and more institutions and banks have been exploring the use of blockchain technology in the bond market and several banks have already entered the fray. A few banks such as Societe Generale, Santander, and BNP Paribas have managed to issue public blockchain bonds. However, in most cases, it was on behalf of their own bank, not a client of the bank as with ABN AMRO.

Several other financial institutions like SIX Digital Exchange (SDX), Goldman Sachs, HSBC are also launching blockchain bond issuance platforms and exploring the use of this technology in the bond market, ABN AMRO is keeping itself ahead of the pack with their latest issuance of a tokenized bond. Additional coverage on institutional-grade bond tokenization can be found in the State of Security Tokens 2023.

ABN AMRO is committed to driving innovation in the financial industry and is continually exploring the potential of blockchain technology to provide value to its clients. For more information on the tokenized bond and ABN AMRO’s other blockchain initiatives, please visit the bank’s website, also for more information about APOC, please visit their website; both links are located below.

Contact Information:

ABN AMRO

Email: pressrelations@nl.abnamro.com

Website: https://www.abnamro.com/en/home

APOC

Email: jennie@inter-relations.co.uk

Website: https://www.apocaviation.com

Security Token Market:

Email: jackson@stomarket.com

Website: https://stomarket.com