DekaBank was the first organization to issue a crypto security and the first bank to be awarded a provisional crypto registrar license. Last week German regulator BaFin awarded DekaBank a full license.
In 2021 Germany’s Electronic Securities Act (eWpG) came into force, allowing ‘crypto’ securities to be issued on a blockchain without a central securities depository (CSD). Despite the use of the term ‘crypto’, these are not cryptocurrencies. They are securities including stocks and bonds. Instead of a CSD, crypto securities require a crypto registrar, an organization that has a narrower role compared to a CSD.
DekaBank is the securities house that services Germany’s savings banks.
Most of the other crypto registrar’s are startups such as Cashlink, E-SEC, Smart Registry and Tangany. The only other incumbent we’re aware of as a registrar is Hauck Aufhäuser Lampe Privatbank (HAL Privatbank) which we believe still has a provisional license and is in the process of being acquired by ABN Amro.
That DekaBank was the first to issue a crypto security illustrates its commitment to tokenization. It launched the SWIAT blockchain network, which aims to host tokenization applications across multiple institutions. Backers include LBBW and Standard Chartered’s SC Ventures. One of SWIAT’s solutions supports the issuance of digital savings bank bonds.
100 crypto securities issuances across the market
Meanwhile, it’s taken three years, but we believe the hundredth German crypto security was issued this week, across all issuers. While the public count of crypto securities is 97, this excludes at least three issuances this week. KfW issued its first blockchain bond with Deka as an investor. DekaBank and DZ Bank both issued crypto securities to each other as part of the ECB’s wholesale DLT settlement trials. With these three transactions, the crypto securities issuance reaches the 100 mark milestone.
