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In a groundbreaking move, KfW, a German state-owned development bank, has issued a CHF 140 million senior unsecured native digital bond on the Zurich-based SIX Digital Exchange (SDX). This marks the first time a German-based institution has issued a digital bond in Switzerland using a regulated digital market infrastructure.
The digital bond issuance by KfW is significant as it demonstrates the potential of digital securities in traditional financial markets. This transaction also contributes to the growing adoption of digital securities, a trend that is expected to reshape the financial landscape.
The issuance and settlement of the digital bond were carried out on SDX, making it the second CHF-denominated bond in the Swiss domestic market this year for KfW. This marks the bank's second foray into the Swiss market this year, underscoring its commitment to exploring digital capital market opportunities.
The digital bond issued by KfW was a CHF 140 million senior unsecured bond, executed using SDX's regulated digital market infrastructure. The transaction was facilitated by SIX Digital Exchange, which provided the infrastructure for the issuance and settlement of the bond.
This digital bond issuance by KfW may serve as a reference point for other institutions exploring similar instruments. The successful execution of this transaction could encourage more traditional financial institutions to venture into digital securities, further accelerating their adoption.
It's worth noting that SDX has been at the forefront of innovative digital bond markets involving central bank digital currencies and blockchain settlement technology. The platform has previously facilitated pioneering transactions, such as the issuance of digital bonds by the cantons of Basel-City and Zurich, which were settled using real Swiss franc wholesale central bank digital currency issued by the Swiss National Bank (SNB) on SDX.
The image used in this article was edited by the platform's team, with the original source being freepik.
[1] Project Helvetia Phase III: https://www.snb.ch/en/referenz/projekte/helvetia [2] KfW's digital capital market initiatives: https://www.kfw.de/EN/KfW-Group/Investor-Relations/Financial-Markets/Digital-Capital-Markets/index.html [3] KfW's CHF 140 million digital bond issuance: https://www.kfw.de/EN/KfW-Group/Investor-Relations/Financial-Markets/Digital-Capital-Markets/News/2025-06-28-KfW-issues-first-native-digital-bond.html [4] SDX's role in innovative digital bond markets: https://www.sixt.com/en/business-areas/digital-exchange/digital-bond-issuance/kfw-digital-bond.html
- The adoption of digital securities in traditional financial markets is being accelerated by innovations in data-and-cloud-computing and technology, as demonstrated by KfW's digital bond issuance that was executed using SDX's regulated digital market infrastructure.
- This move by KfW, a significant player in the finance and business sectors, may inspire other traditional institutions to consider digital securities, further reshaping the financial landscape and strengthening the fintech industry.
- The success of KfW's digital bond issuance, which took place on SDX, a platform known for its involvement in pioneering digital bond markets and blockchain settlement technology, could lead to more institutions leveraging data-and-cloud-computing to issue digital securities.
