By Laura Contemori – ROME (Econostream) – German development bank KfW on Tuesday issued its third blockchain-based bond under the German Electronic Securities Act (eWpG).

The €100 million crypto bond, guaranteed by the Federal Republic of Germany and rated “AAA” by Moody’s, S&P and Scope, carries a 2.75% coupon and matures on December 7, 2027. It was priced on June 8, 2026 with a reoffer yield of 2.799% and settlement scheduled for June 9, 2026.

KfW plans to carry out a “rigorous test” in autumn by switching both the crypto securities registrar and the underlying blockchain infrastructure. The registrar is scheduled to move from Cashlink to DekaBank, while the bond will migrate from the Polygon blockchain to the SWIAT/Regulated Layer One platform.

KfW said its aim is to test “under real market conditions how such structures can function reliably in cooperation with banks, investors and infrastructure operators, and how they can be made more widely usable in the future.”

It also said it had independently established and secured the blockchain address required for delivery-versus-payment (DvP) settlement, reducing reliance on external service providers and expanding its own technical capabilities.

The bond was arranged by Bankhaus Metzler, DekaBank, DZ BANK AG and LBBW. Union Investment acted as an anchor investor, with additional investors such as Berliner Volksbank, Cecabank, Deutsche Apotheker- und Ärztebank eG, Helaba Invest KAG, NRW.BANK and WIBank.

KfW said it would share findings from the transaction with the market to support the development of digital capital market structures.