Germany’s regional development bank, NRW.BANK has issued a €100 million digital bond using the Polygon blockchain. This is a first for a German state lender. The bond, with a two‑year maturity, is issued under the German Electronic Securities Act (eWpG), allowing for fully on‑chain securities without paper certificates.
Cashlink Technologies, a BaFin‑licensed crypto registrar, will manage the registration and compliance, while Polygon’s layer‑2 infrastructure will handle the issuance. Major institutions such as Deutsche Bank, DZ Bank, and DekaBank acted as lead underwriters for the bond.The move marks a significant milestone in the embrace of tokenized capital markets across Europe.
Germany’s crypto exposure
The German government holds approximately 44,692 BTC (about $2.82 billion) and has recently transferred over 1,500 BTC ~$95 million to exchanges. Back in June 2024, the German government sold 49,858 BTC for $2.89 billion at an average of just $57,900. Around the same time, Saxony’s state government sold ~50,000 confiscated BTC valued at €2.5 billion. This move gained criticism from MPs as they said it was “short‑changing taxpayers”.
Big win for Polygon
Polygon in its X post said that the move shows that capital markets are evolving and global institutions are exploring tokenized securities. It claimed that institutionalization of digital capital markets would increase liquidity, reduce operational costs and improve transparency & security.
The €100 million Polygon bond also represents a breakthrough in bridging tradfi and crypto, enabling public sector adoption of blockchain-based financing. Meanwhile, Germany’s BTC holdings and active sales reflect a complex balancing act between leveraging seized crypto and cautious portfolio management. These developments signal a maturing digital asset strategy within one of Europe’s largest economies.