The Dutch giant bank chose Polygon for the issuance of 5 million euros of crypto green bonds. ABN Amro carried out the bond issuance through Polygon-backed Tokeny.
This altcoin was the choice of the giant bank of the Netherlands
ABN Amro has conducted a digital green bond offering using Polygon’s layer 2 Ethereum scaling technology to raise €5 million. For this, the Dutch bank used Tokeny’s platform, which runs on Polygon, the Ethereum layer-2 protocol. The green bond was issued as an ERC3643 token through Tokeny, an infrastructure platform that uses Polygon to enable financial institutions to issue and manage securities and financial instruments.
ABN AMRO has succeeded in securing €5 million in funding for real estate investor Vesteda. Vesteda plans to use the financing to refinance “green assets” as part of the company’s green finance framework, according to the bank. Crypto green bonds are a fund-raising tool used to invest in projects or companies that are sustainable and create a positive environmental impact.
The bank is considering similar bond issues in the future
ABN AMRO also announced other details of the green bond. After making the payment, DekaBank took ownership of the tokens representing its 5 million euro investment. Meanwhile, the bank uses Fireblocks to manage the private keys of the digital security. ABN AMRO has previously explored the issuance of digital bonds, including purchasing and reselling a digital bond from the European Investment Bank (EIB).
Olivier Aartsen, head of the bank’s debt capital tokens, made a statement on the issue. Aartsen said ABN AMRO aims to support multiple crypto bond offerings in the future. ABN Amro’s digital asset leader Martijn Siebrand talked about the importance of using the ERC3643 standard. Siebrand stated that this standard allows the bank to embed compliance rules into digital bonds. In this regard, he made the following statement:
They can even interact seamlessly and harmoniously with other applications on the public network, thanks to native interoperability.
Interest in crypto bonds is increasing
Mainstream financial institutions are increasingly leveraging Blockchain technology to issue and manage digital bond offerings for a range of different use cases. Siemens made headlines in February 2023 when it issued a $64 million crypto bond. Thus, through these bonds, DekaBank received direct investment from DZ Bank and Union Investment.
Meanwhile, the European Investment Bank issued Blockchain-based digital bonds in June 2023. These bonds had a unique structure backed by environmentally incentivized node infrastructure. This 1 billion Swedish krona bond will offer institutional investors a fixed rate of 3.638% for two years. The platform supporting the EIB’s crypto bond was developed in a joint project involving Skandinaviska Enskilda Banken (SEB) and Credit Agricole CIB. The developers intend to use So|bon to issue, trade and exchange bonds digitally.
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