In a historic move that marks a significant step forward for sustainable finance, ABN AMRO, a leading Dutch bank, has partnered with Tokeny to tokenize a green bond on a public blockchain.
This groundbreaking initiative leverages Tokeny’s ERC3643 standard and showcases the intersection of blockchain technology, environmental responsibility, and financial innovation.
The result?
Vesteda has secured substantial financing of €5 million from DekaBank, marking an important milestone in sustainable finance.
This achievement is set to redefine the financial landscape in the Netherlands and beyond.
The Power of Tokenization
ABN AMRO’s foray into tokenizing a green bond on a public blockchain is a testament to its commitment to innovation. It demonstrates that securities can be efficiently represented on a public blockchain without compromising regulatory compliance. By leveraging the ERC3643 standard and Tokeny’s sophisticated platform, ABN AMRO has established strong control over its digital bonds.
The use of blockchain technology allows ABN AMRO to track ownership of tokens and retrieve digital securities from external wallets if necessary, ensuring that investors’ rights are protected. Authorised agents also exercise strict oversight over the transfer of digital bonds on the network, with the ERC3643 smart contract ensuring that transfers are exclusive to authorised investors for that particular investment offering.
Compliance and innovation
By implementing the ERC3643 standard, ABN AMRO has successfully integrated compliance rules into its digital bonds, enabling seamless and compliant interactions with other applications on the public blockchain. This marks the beginning of a transformative journey where innovation in the financial sector knows no bounds.
Martijn Siebrand, Digital Assets at ABN AMRO, highlighted the visionary commitment of ABN AMRO’s management team to usher in a new era of transparency, efficiency and accessibility in the financial world. This commitment to blockchain technology is clearly reflected in their decision to tokenize green bonds.
Tokeny’s role in the revolution
As a compliance infrastructure for digital assets, Tokeny played a crucial role in this historic achievement, enabling financial participants in private markets to issue, transfer and manage securities in a compliant manner using distributed ledger technology.
With trust, compliance and control at its core, Tokeny has enabled market participants to make advances in the management and liquidity of financial instruments.
Polygon’s role in the Web3 revolution
The institutional adoption of Polygon’s public blockchains for digital bonds is a testament to the technology developed by Polygon Labs.
This paves the way for greater adoption of Web3, creating an open and interoperable environment for on-chain compliance and opening up endless future possibilities.
About the players
ABN AMRO: A bank for North-West Europe headquartered in Amsterdam, ABN AMRO is dedicated to being a personal bank for the digital age, shaping the transition to a sustainable society and focusing on North-West Europe. Its purpose is to “bank for the benefit of generations to come”.
Tokeny: Tokeny provides a compliance infrastructure for digital assets, enabling financial participants in private markets to issue, transfer and manage securities using distributed ledger technology. It is backed by strategic investors such as Euronext and Inveniam.
Polygon: Polygon Labs develops Ethereum scaling solutions for Polygon protocols, with the goal of providing a scalable, affordable, secure, and sustainable blockchain infrastructure for Web3. They are known for the widespread adoption of their scaling solutions and are carbon neutral, with the goal of driving Web3 to become carbon negative.
To conclude
The collaboration between ABN AMRO and Tokeny to tokenize green bonds on a public blockchain is a historic achievement that illustrates the future of sustainable finance.
This initiative demonstrates that compliance and innovation can coexist on the blockchain, ushering in a new era of transparency and efficiency in the financial world.
As institutions like ABN AMRO embrace blockchain technology, the potential for Web3 adoption and on-chain compliance becomes limitless, paving the way for a revolution in financial markets and beyond.
