ABN AMRO, in collaboration with Tokeny, has made history as the first Dutch bank to tokenize a green bond on a public blockchain. Employing the market-standard ERC3643 through Tokeny’s sophisticated tokenization platform, ABN AMRO has established robust control over its digital bonds. A control that ensures all regulatory requirements are enforced on-chain at the smart contract level, even when these green bonds are represented on the Polygon permissionless network.
This groundbreaking initiative culminated in an outstanding achievement as Vesteda secured a substantial EUR 5 million in funding from DekaBank, marking a decisive leap forward in the domain of sustainable financing. The fusion of blockchain technology, environmental responsibility, and financial innovation has resulted in a landmark achievement that is set to shape the landscape of financial markets and redefine banking in the Netherlands and beyond.
Through this project, ABN AMRO has demonstrated that securities can be effectively represented on a public blockchain without compromising compliance when equipped with the appropriate tools. For example, ABN AMRO is able to track the ownership of tokens and even recover digital securities in external wallets if needed. Therefore, investors’ rights are easily protected. Moreover, its authorized agents have rigorous oversight over the transfer of digital bonds on the network. The ERC3643 smart contract ensures that transfers are exclusively permitted to authorized investors for this investment offering.