ABN Amro was the first Dutch bank to file a digital bond on the public blockchain by employing Fireblocks. Digital bonds were sold to a small number of investors in order to generate capital for APOC, a corporate customer of ABN Amro in the aerospace sector.
Bond issuance by ABN Amro establishes a paradigm for expanding blockchain technology’s real-world applications in conventional capital markets. This program demonstrates the possibility of new finance sources for businesses in various sectors.
“This revised digital approach for delivering leveraged finance to our medium- and large-sized business customers bridge the gap between conventional bonds and crowdfunding. “Thanks to blockchain technology, it’s extremely effective and customer-friendly.” – Edwin van Bommel, Chief of Strategy and Innovation
Not only have banks increased their use of blockchain technology, but in October 2022, the Israel Ministry of Finance and Tel Aviv Stock Exchange released the first-ever digital bond using Fireblocks. ABN Amro cooperated with Fireblocks and BitBond on the tokenized bond issue of APOC.
BitBond created the smart contract on the Stellar network. ABN Amro leveraged Fireblocks’ end-to-end tokenization technology to mint/burn the token safely, store it with the custodian, and streamline digital asset treasury administration operations.
The blockchain documented title of the bonds in the format of tokens that purchasers received after paying for the bond. “With the issue and delivery of its initial digital bond, ABN AMRO is redefining how conventional banks may service commercial customers by leveraging blockchain technology. Fireblocks is pleased to provide ABN AMRO with safe, scalable infrastructure technology for the issue of digital bonds. – Michael Shaulov, co-founder and CEO.
