German State Bank Issues €100M Bond on Polygon – Is TradFi Finally Embracing Crypto?

Key Points

1. The bond, with a two-year maturity, was issued under Germany’s Electronic Securities Act (eWpG) and involved institutional investors like Deutsche Bank, DZ BANK, and DekaBank.

2. Germany’s eWpG law, introduced in 2021, provides a clear legal framework for digital securities, facilitating such blockchain-based financial instruments.

3. Polygon is undergoing a major technical upgrade with Heimdall 2.0, aiming to reduce finality time to five seconds and enhance network resilience.

4. Germany is emerging as a hub for regulated blockchain finance, with recent digital bond issuances by institutions like DZ BANK, DekaBank, Commerzbank, KfW, and Siemens.

5. Polygon remains a key player in tokenization, ranking 6th in total RWA value with over $343 million in assets and capturing 37.7% of the tokenized bond market.