TL;DR

• German state owned bank NRW.BANK has issued a €100 million blockchain-based bond on the Polygon network
• It’s the bank’s first fully digital bond and one of the largest public blockchain bond deals in Europe
• Issued under Germany’s eWpG law, the bond shows rising confidence in tokenized finance
• Signals growing maturity in Europe’s digital securities market

Germany’s NRW.BANK, the state owned development bank for North Rhine-Westphalia, just took a bold step into the future of finance. The institution has issued a €100 million blockchain-based bond on the Polygon network, marking its first fully digital bond and one of the most significant public-sector blockchain bond issuances in Europe to date.

The two-year bond is a key milestone in Europe’s transition toward on-chain financial infrastructure, and it’s backed by a full legal framework under Germany’s Electronic Securities Act (eWpG) which was introduced in 2021 to legitimize tokenized securities.

A Public Sector First on Polygon

The bond issuance was made possible through the infrastructure of Cashlink Technologies, a German firm licensed by BaFin, the country’s top financial regulator, to act as a crypto securities registrar.

Using Polygon, an Ethereum-compatible layer-2 blockchain, means that the bond exists entirely on a decentralized ledger without a traditional paper certificate. It can be monitored, verified, and settled digitally, significantly reducing the administrative burden typically associated with government bond markets.

By issuing on-chain, NRW.BANK joins a small but growing group of major institutions exploring blockchain for real-world asset issuance, and it’s one of the largest government-related entities in Europe to take the leap.

Institutional Interest Backs the Move

The bond’s issuance drew interest from a roster of major institutional players. Deutsche Bank, DZ BANK, and DekaBank served as joint lead managers, a strong signal that traditional financial institutions are increasingly comfortable working with tokenized securities.

The success of this deal suggests that investor appetite for blockchain-native instruments is growing, especially among institutional buyers seeking faster, more transparent, and lower-cost processes in the bond market.

While €100 million is a relatively small number in the context of global bond markets, it’s a major statement in the context of public-sector innovation.

Why Polygon?

Polygon has become one of the most widely adopted Ethereum layer-2 networks, particularly known for its low fees and high throughput both critical for real-world finance use cases.

For a public bank like NRW.BANK, issuing on Polygon brings the best of both worlds, Ethereum’s decentralization and Polygon’s scalability. It also signals that public-sector actors are willing to trust public infrastructure when the right compliance tools and frameworks are in place.

Final Thought

NRW.BANK’s €100 million bond on Polygon, it’s a strategic signal. As laws catch up with technology, public institutions are beginning to trust blockchains for critical financial infrastructure. Europe, once cautious, is now positioning itself at the frontline of tokenized public finance. If more governments follow NRW’s lead, the traditional debt market may never look the same again.