LBBW’s Berlin Hyp to Issue €100M Mortgage Bond Based on SWIAT DLT

The wholesale DLT test settlement conducted by the European Central Bank using central bank digital currency has stimulated many institutions to issue digital bonds. The latest one is Berlin Hyp, a subsidiary of LBBW, which plans to issue €100 million mortgage-backed digital bonds on the SWIAT blockchain on August 2. This will be the first mortgage bond (Pfandbrief) issued under German eWPG law as an anonymous bond or "encrypted security". This means that the law no longer requires physical certificates or the involvement of central securities depositories. Instead, the bonds must be registered by an encrypted securities registration agency, in this case, DekaBank.