What Institutions Want From Digital Securities

KfW reaches €50 billion in digital securities issuance as institutions embrace tokenization through Clearstream's D7 platform.

KfW has completed its 100th digital bond issuance as a Central Register Security through Clearstream's D7 platform, marking a major milestone for institutional tokenization in Germany.

What began in late 2022 as a pilot under Germany's Electronic Securities Act (eWpG) has grown into approximately €50 billion of digital securities issued, highlighting increasing institutional adoption of tokenized capital markets infrastructure.

➡️ Why this matters

Germany's Electronic Securities Act (eWpG), introduced in 2021, removed the requirement for physical global certificates and created a legal framework for securities to exist entirely in digital form.

The legislation enabled two models:

1️⃣ Central Register Securities, issued digitally and recorded at a CSD such as Clearstream

2️⃣ Crypto Securities, issued and recorded natively on DLT infrastructure

Much of the tokenization discussion focuses on crypto securities and DLT-native issuance. But the market has voted differently.

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