Our firm advised NN Bank on an innovative pilot transaction involving the issuance of a covered bond that was simultaneously tokenised on a public blockchain. The pilot is a key step for NN Bank in applying Distributed Ledger Technology (also known as blockchain) to well-established capital markets products. The token represents the bond on chain one for one and is designed to mirror the bond’s key terms and exposure. For the purposes of this pilot, all cash flows continue to be processed through the conventional bond, while the token was used to test on chain issuance, transfer and custody. The conventional bond was issued under NN Bank’s existing Covered Bond Programme.
“NN Bank’s covered bond pilot, tokenised on a public blockchain, marks a first in the Netherlands and a step towards integrating distributed ledger technology in capital markets.”
The team further consisted of Marc Boere and Sven Uiterwijk.
