NRW.BANK, a development bank owned by the state of Germany, has successfully launched a €100 million ($116.7 million) bond utilizing blockchain technology on the Polygon network. This issuance represents a significant advancement for the public sector in the realm of digital securities.
This bond, set to mature in two years, was issued in compliance with Germany’s Electronic Securities Act (eWpG), which facilitates the complete issuance and registration of bonds on blockchain platforms, thereby removing the necessity for traditional paper certificates.
Cashlink Facilitates Bond Registration on Polygon, Encouraging DLT Adoption
The registration of the bond was managed using the services of Cashlink Technologies, a registrar for crypto securities licensed by BaFin, with Polygon acting as the foundational blockchain technology.
With the backing of prominent financial entities like @DeutscheBank, @dzbank, and @DekaBank, NRW.BANK has taken a pivotal step by tokenizing its inaugural fully digital bond.
The issuance of the €100 million bond, registered through Cashlink, indicates a significant progression in the financial sector’s embrace of blockchain technology.
pic.twitter.com/37jqqQpz8F
— Polygon (@0xPolygon) July 10, 2025
Notably, institutional giants such as Deutsche Bank, DZ BANK, and DekaBank have participated in this offering, serving as joint lead managers of the bond.
Michael Duttlinger, CEO of Cashlink, commented on the milestone, stating, “This is more than a technical milestone. It’s a signal that public financial institutions are ready to move beyond blockchain pilots and start integrating these systems at scale.”
This issuance signifies NRW.BANK’s first attempt at a fully digital bond, showcasing an increasing trust in blockchain for use within regulated capital markets.
Germany’s eWpG legislation, enacted in 2021, has laid a clear framework for incorporating distributed ledger technology in securities, fostering interest from banks and governmental entities in tokenized finance. Although the digital bond market is still burgeoning compared to traditional bond markets, activity in this space is gaining momentum.
Additionally, Polygon’s involvement in this issuance coincides with the network’s preparations for a significant technical update. The Polygon Foundation plans to launch Heimdall 2.0, a new consensus layer for its proof-of-stake blockchain.
Set to become operational on Thursday, this upgrade aims to shorten finality time to just five seconds and bolster network resilience against potential disruptions.
As noted by Sandeep Nailwal, CEO of the Polygon Foundation, “This is the most technically complex hard fork Polygon PoS has seen since its launch in 2020.”
Shipping Announcement!
Our development is accelerating—next, we’re rolling out Polygon PoS’s consensus layer, Heimdall v2, set to launch on 10 July 2025.
This represents a pivotal technical advancement since polygon’s establishment.
What’s changing?
1. Heimdall…
— Sandeep | CEO, Polygon Foundation (※,※) (@sandeepnailwal) July 8, 2025
Nailwal elaborated that the upgrade would enhance finality times and reduce the risk of chain reorganizations, further illustrating the evolution of the blockchain infrastructure supporting tokenized finance.
Germany Expands Digital Bond Initiatives as Financial Institutions Embrace Blockchain
Germany is rapidly establishing itself as a center for regulated blockchain financial activities. Recent digital bond issues by key institutions like DZ BANK, DekaBank, Commerzbank, NRW.BANK, KfW, and Siemens highlight the country’s swift acceptance of tokenized securities, enabled by the eWpG legislation.
Earlier this month, KfW issued a CHF 140 million digital bond through the SIX Digital Exchange in Switzerland. Furthermore, in February 2023, industrial powerhouse Siemens entered the digital securities market, issuing its first digital bond valued at €60 million ($64 million) on the Polygon public mainnet.
In addition to the digital bond market, Germany’s traditional banking sector is increasing its engagement with cryptocurrencies. Sparkassen-Finanzgruppe, which serves over 50 million customers, plans to launch crypto trading services for its clientele by mid-2026, facilitated by Dekabank, a financial entity within the group. This service will enable retail clients to trade Bitcoin and Ether through the group’s mobile banking app.
The German Savings Banks Association has acknowledged this development, presenting it as a proactive measure in light of the recently introduced EU Markets in Crypto-Assets (MiCA) regulation.
According to the association, the aim is to provide customers with “reliable access to a regulated crypto offering.”
This initiative aligns with a broader trend among German banks toward increased crypto adoption. For example, DZ Bank has started exploring trading and custody solutions for digital assets in a collaboration with Boerse Stuttgart Digital, while Landesbank Baden-Württemberg announced its intent to implement crypto custody services for institutional clients through a partnership with the Austrian exchange Bitpanda.
In the meantime, Polygon is realigning its strategy following the departure of co-founder Mihailo Bjelic on May 24, leading to Sandeep Nailwal now overseeing the Polygon Foundation as its CEO.
BIG update – I am taking full control of the Polygon Foundation as its CEO. Having been its largest supporter, I will focus on leading the development and success of @0xPolygon for the foreseeable future.
pic.twitter.com/IDbzeKhiwi
— Sandeep | CEO, Polygon Foundation (※,※) (@sandeepnailwal) June 11, 2025
Under his leadership, Polygon aims to phase out its underperforming zkEVM chain to concentrate on core areas such as real-world asset tokenization, stablecoin payments, and its proof-of-stake (PoS) framework.
Despite a substantial decline in its market capitalization—from $20 billion during its peak to $1.7 billion—Polygon continues to be a pivotal player in the tokenization landscape.
Remarkably, Arbitrum and @0xPolygon now make up 83% of the global tokenized bond market.
Source: @RWA_xyz pic.twitter.com/IDbzeKhiwi
— Peter (, , ) (@p_petertherock) July 10, 2025
As per rwa.xyz, the network holds the sixth position in terms of total value of real-world assets, totaling over $343 million across 254 tokenized instruments, while capturing 37.7% of the entire tokenized bond market, underscoring its sustained relevance within institutional blockchain infrastructure.
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