ABN Amro became the first bank in the Netherlands to register digital bonds on the public blockchain, using it Fireblocks. These digital bonds are issued to a select group of investors to raise funds on behalf of APOC, and ABN Amro commercial clients in the aerospace industry.
ABN Amro’s bond issuance sets an innovative precedent to bring more tangible use cases of blockchain technology to traditional financial markets. This initiative represents a potential new funding stream for commercial enterprises in all industries.
“This updated digital solution to provide medium-sized and larger commercial clients with leveraged financing fills the gap between traditional bonds and crowdfunding. Thanks to the blockchain, it is very efficient and very client-friendly.
Edwin van Bommel, Chief Strategy & Innovation Officer
Not only banks have adopted blockchain technology – in October 2022, the Israeli Ministry of Finance and the Tel Aviv Stock Exchange issued the first digital bonds with Fireblocks.
How ABN Amro launched the first digital bond in the Netherlands with Fireblocks and BitBond
ABN Amro collaborates with Fireblocks and BitBond on the issuance of APOC token bond offering.
- The smart contract was developed by BitBond on the Stellar blockchain.
- ABN Amro then uses the Fireblocks end-to-end tokenization platform to securely mint/burn, and maintain the tokens, as well as to simplify the digital asset treasury management process.
- Ownership of the bond is recorded on the blockchain in the form of tokens that investors receive after paying for the bond.
“With the issuance and distribution of the first digital bonds, ABN AMRO sets a new bar on how traditional banks can better serve their commercial clients using blockchain technology. Fireblocks is proud to support ABN AMRO with a secure and highly scalable foundational technology for issuing digital bonds.
Michael Shaulov, CEO and co-Founders.
Featured image credit: Modified from Unsplash