8.6 C
New York
Sunday, July 21, 2024
Home Fintechs ABN AMRO and Tokeny Pioneer Sustainable Finance on Public Blockchain

ABN AMRO and Tokeny Pioneer Sustainable Finance on Public Blockchain

In a historic move that signals a significant step forward for sustainable financing, ABN AMRO, one of the leading Dutch banks, has partnered with Tokeny to tokenize a green bond on a public blockchain. 

This groundbreaking initiative employs Tokeny’s ERC3643 standard and showcases the intersection of blockchain technology, environmental responsibility, and financial innovation. 

The result? 

Vesteda secured a substantial EUR 5 million in funding from DekaBank, marking a milestone in sustainable finance. 

This achievement is poised 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 their commitment to innovation. It demonstrates that securities can be effectively represented on a public blockchain without compromising regulatory compliance. Through the use of the ERC3643 standard and Tokeny’s sophisticated platform, ABN AMRO has established robust control over its digital bonds.

The use of blockchain technology allows ABN AMRO to track token ownership and recover digital securities from external wallets if necessary, ensuring the protection of investors’ rights. Authorised agents also have stringent oversight over the transfer of digital bonds on the network, with the ERC3643 smart contract ensuring that transfers are exclusive to authorized investors for this particular investment offering.

Compliance and Innovation

By implementing the ERC3643 standard, ABN AMRO has successfully embedded compliance rules into their 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 seen in their decision to tokenize green bonds.

Tokeny’s Role in the Revolution

Tokeny, as a compliance infrastructure for digital assets, played a crucial role in this historic achievement. It enabled financial actors in private markets to compliantly issue, transfer, and manage securities using distributed ledger technology. 

With trust, compliance, and control at its core, Tokeny allowed market participants to unlock advancements in the management and liquidity of financial instruments.

Polygon’s Role in the Web3 Revolution

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 web3 adoption, creating an open, interoperable environment for on-chain compliance and unlocking endless future possibilities.

About the Players

ABN AMRO: A Northwest European bank headquartered in Amsterdam, ABN AMRO is dedicated to being a personal bank in a digital age, shaping the transition to a sustainable society, and focusing on North-western Europe. Their purpose is “Banking for better, for generations to come.”

Tokeny: Tokeny provides a compliance infrastructure for digital assets, allowing financial actors in private markets to issue, transfer, and manage securities using distributed ledger technology. It is backed by strategic investors like Euronext and Inveniam.

Polygon: Polygon Labs develops Ethereum scaling solutions for Polygon protocols, with the goal of providing 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 aim of leading Web3 to become carbon negative.

Wrapping Up

The collaboration between ABN AMRO and Tokeny to tokenize green bonds on a public blockchain is a historic achievement that showcases the future of sustainable financing. 

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 adopt blockchain technology, the potential for web3 adoption and on-chain compliance becomes boundless, setting the stage for a revolution in financial markets and beyond.

Recent posts

NEW Revolut UK CEO to make Conference Debut at MoneyLIVE Summit

MoneyLIVE has today announced that Revolut’s newly appointed UK CEO will be making her conference debut at MoneyLIVE Summit 2024, which is...

2024’s Financial Innovators: A New Era of Banking Startups 

In the wake of the COVID-19 pandemic, our world witnessed an unprecedented shift towards digitalization. The banking industry, in particular, has been...

C-suite Banking and Payments Leaders From Across Europe Set to Meet at London’s MoneyLIVE Summit in March

On the 6-7 March 2024 MoneyLIVE Summit will return to London’s QEII Centre to unite over 1000 banking and payments leaders from...

The Evolution of Digital Wallets: A Shift from Physical Cards by 2030

By 2030, we can expect digital wallets to become the preferred payment instrument, offering a myriad of non-payment-related services for consumers.