European tokenization provider Tokeny has enabled ABN AMRO to issue a tokenized bond in an offering that is described as being the first Dutch ban to issue a green bond on a public blockchain.
Tokeny shares that Vesteda raised €5 million while predicting the offering will help to “shape the landscape of financial markets and redefine banking in the Netherlands and beyond.”
Tokeny utilized Polygon and the ERC3643 standard to manage the digital asset. All compliance is managed on the blockchain via smart contracts.
Polygon is an Ethereum scaling solution that provides a solution to some of the shortcomings of the blockchain. Polygon Labs reports over 320 million unique addresses, having processed 2.9 billion transactions since its inception.
Tokeny noted that ABN AMRO is able to track the ownership of the bonds and even recover digital securities in external wallets if needed. This is said to make the protection of investor rights more simple.
Martijn Siebrand, head of Digital Assets at ABN AMRO, said they have successfully embedded compliance rules into the digital securities.
“They can even seamlessly and compliantly interact with other applications on the public network thanks to native interoperability. This marks the beginning of a transformative journey, where the possibilities for innovation in the financial sector are boundless,” said Siebrand.
Tokeny CEO Luc Falempin said the digital assets are emblematic of a new era of transparency, efficiency, and accessibility. Falempin said more financial institutions are recognizing the potential of public blockchains, and they are thrilled to work with ABN AMRO.
Colin Butler, Global Head of Institutional Capital at Polygon Labs, claimed that with firms like ABN AMRO using Polygon, it is clear their tech is poised for greater adoption.