Cassa Depositi e Prestiti Spa (CDP), the Italian bank, has issued a digital bond on the Polygon blockchain as a part of the trial program run by the European Central Bank.
The European Central Bank has been at the forefront of a trial program of central bank settlements of transactions on blockchains. Under this program, the Italian bank Cassa Depositi e Prestiti Spa (CDP) has issued its first digital bond on the Polygon blockchain. Worth 25 million euros nominally, the digital bond will mature in four months.
A press release on the development shared further details on the development. It noted that digital ledger technology (DLT) enabled the bond, while the Fintech decree-law approved it legally. Meanwhile, the bank is a part of the European Central Bank’s program on DLT. The Bank of Italy and the European Central Bank jointly selected this initiative for the program.
Intesa Sanpaolo served as the sole institutional investor for the bond, and together with the bank, acted as market participants. An interoperability solution by the Bank of Italy allowed cash-flow settlements on the same day.
Fabio Massoli, a senior official of CDP, said, “This transaction represents a significant step for CDP in capital market innovation through the pioneering adoption of blockchain technology for bond issues. It is a project finalized with the valuable support of Intesa Sanpaolo and aims to establish a new technological model..”
Massimo Mocio from Intesa Sanpaolo said the bond would be a point of reference for future issuers of such bonds. Meanwhile, he lauded the European Central Bank’s leading role in the project.
A few days ago, the Bank of Italy released a few crypto regulatory guidelines under Europe’s crypto regulations. Moreover, European countries are amidst crafting such rules under MiCA for a transparent crypto regulatory regime.
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