Natixis Pfandbriefbank and DekaBank Realise First Digital Registered Covered Bond on SWIAT Blockchain

 
Frankfurt, 28.08.2024

Natixis Pfandbriefbank and DekaBank have realised the first digital registered covered bond in Germany on the SWIAT blockchain. The issuance volume was EUR 100 million. Natixis Pfandbriefbank acted as the issuer, while DekaBank was the investor. Additionally, DekaBank assumed the role of registrar and paying agent. The fintech SWIAT, a joint venture of DekaBank, LBBW, and SC Ventures, provided the software for the tokenisation of the registered covered bond and the private, permissioned, and Basel-compliant blockchain as the settlement network.
 
"We are consistently driving the digital transformation of the securities business. Our vision is to transfer the traditional securities spectrum and current process world into the modern, digital, and blockchain-based world. The first digital registered covered bond on the SWIAT blockchain brings us one step closer to this vision. By 2025, we aim to realise the first billion Euros in issuance volume on the SWIAT blockchain," says Martin K. Müller, Executive Board Member of DekaBank.
 
"We are delighted to bring the proven registered covered bond to the market in digital format together with DekaBank and are convinced that these first digital format bonds will mark the beginning of an accelerating development of digital securities," says Hansjörg Patzschke, Chairman of the Board of Natixis Pfandbriefbank AG.
 
Blockchain-based systems in the securities business promise significant efficiency gains and cost savings. The technology enables process automation in asset servicing and shortened settlement cycles, reducing current reconciliation processes and intransparencies, and mitigating counterparty risks.
 
Previously, the issuance of a registered covered bond was necessarily paper-based and involved numerous manual steps, which are time-consuming and prone to errors. The digital transformation of the issuance process enables same-day settlement and optimised security standards. The improved tradability and lower fulfilment risk make the product more attractive to investors.
 
A Distributed Ledger (DL) is a publicly viewable, decentralised ledger where transactions are recorded without a central controlling entity. DLs are based on blockchain technology and enable the tokenisation of assets into virtual units - tokens. These are managed through smart contracts.
 
A private blockchain network like SWIAT is also a decentralised peer-to-peer network. However, it is coordinated by an organisation. The organisation oversees access to the network and carries out joint protocol changes with the participants. Permissioned means that only authorised participants can take part in the network and its transactions.
 
About Natixis Pfandbriefbank
 
Natixis is one of the market leaders in commercial real estate financing in Europe. As part of the BPCE group, Natixis belongs to the second-largest banking group in France. Natixis Pfandbriefbank AG, a 100 percent subsidiary of Natixis, primarily finances office, retail, logistics, and residential properties for commercial clients, as well as hotels and mixed-use properties. The covered bonds of Natixis Pfandbriefbank AG are rated Aaa by Moody’s. As part of the BPCE group, Natixis Pfandbriefbank AG is aware of the real estate sector’s impact on the environment, particularly regarding the consumption of natural resources and climate change. It has developed a special methodology for identifying green buildings to further support its focus on ecological sustainability.
  
About SWIAT
 
SWIAT is a Frankfurt-based fintech that develops blockchain software for an open, decentralised financial market infrastructure. SWIAT provides banks and financial institutions with a blockchain-based transaction platform as a settlement network, enabling them to issue regulated digital assets.

DekaBank is the securities services provider of the German Savings Banks Finance Group (Sparkassen-Finanzgruppe). Together with its subsidiaries it forms Deka Group. With total customer assets of more than EUR 402 billion (as at 30/06/2024) and 5.6 million securities accounts, DekaBank is one of the largest securities services providers and real estate asset managers in Germany. It provides private and institutional investors with access to a wide range of investment products and services. DekaBank is firmly anchored in the Sparkassen-Finanzgruppe (Savings Banks Finance Group) and tailors its product portfolio to the requirements of its owners and sales partners in the securities business.