Digital bond issued on the Polygon blockchain under new Italian law by CDP

In a significant leap for the financial industry, the development bank CDP, majority owned by the Ministry of Economy and Finance, has issued a digital bond on the Polygon public blockchain. This marks the first time a digital bond issuance has applied the 'Fintech decree' law to a DLT issuance that is not part of the Pilot Regime and has been settled on a public blockchain.

The digital bond issuance is also part of the European Central Bank's wholesale DLT settlement trials. Notably, it is the first to apply the Bank of Italy's TIPS Hash Link solution for payment in central bank money, marking the settlement of a public blockchain bond issuance with central bank money.

CDP's digital bond issuance does not fall under Italy's DLT Pilot Regime. Instead, the digital bond settlement uses Italy's 'Fintech decree' law. The log of the real names and details of the owners of the securities for the digital bond is the Digital Register, which is maintained by a Digital Register Manager authorized by Consob, Italy's securities regulator.

The Digital Register for the digital bond is a crucial component, serving as a record of the real names and details of the owners of the securities. However, the search results do not provide the name of a Digital Register Manager responsible for maintaining the Digital Register in the CDP issuance of €25 million digital bonds on the Polygon blockchain.

Interestingly, the digital bond issuance was underwritten by Intesa Sanpaolo as the sole investor. This means that the Italian banking group played a pivotal role in the successful issuance of the digital bond.

This groundbreaking digital bond issuance by CDP is a significant step forward in the adoption of blockchain technology in the financial sector. It demonstrates the potential for DLT to streamline processes, increase efficiency, and open up new opportunities for innovation in the financial industry. As more institutions explore the use of digital assets and blockchain technology, we can expect to see more groundbreaking developments in the near future.

Digital bond issued on the Polygon blockchain under new Italian law by CDP