ABN Amro has become the first Dutch bank to register a digital green bond on a public blockchain.
The entire process of preparing, placing and documenting of the bond - which saw Vesteda raise EUR5 million from DekaBank - was digital.
Ownership was recorded on the blockchain in the form of tokens that the investor acquired after they had paid for the bond. To ensure custody and security of the investors’ unique keys, ABN Amro used a wallet for accessing the digital bond. The bank also provided the digital custody services.
ABN Amro had previously registered a digital bond for a Midcorp client on the public blockchain. It has also purchased a digital bond from the European Investment Bank for reselling.
Olivier Aartsen, head, debt capital markets, ABN Amro, says: "We will continue to advise other clients and investors in this area and aim to further support multiple digital bond issuances in the future."