tl;dr
Germany’s state-owned bank KfW invested $11 million in Berlin Hyp’s blockchain-based digital mortgage bonds, part of the ECB’s blockchain settlement experiment under the German Electronic Securities Act. The transaction was an over-the-counter deal with Frankfurt’s DekaBank acting as seller and cust...
Germany’s state-owned bank KfW has invested $11 million in Berlin Hyp’s blockchain-based digital mortgage bonds, marking a significant institutional endorsement of digital securities. This investment is part of the European Central Bank’s blockchain settlement pilot under the German Electronic Securities Act and was conducted via an over-the-counter transaction with DekaBank acting as seller and custodian, bypassing traditional central securities depositories. KfW aims to tackle secondary market liquidity challenges and drive digitalization in finance, emphasizing faster and more efficient transactions through Distributed Ledger Technology (DLT). Having issued digital bonds previously in 2022 and 2024, KfW calls for regulatory clarity and central bank recognition of digital securities to fortify the ecosystem.
Meanwhile, MultiBank, MAG, and Mavryk have joined forces to tokenize $3 billion worth of luxury real estate assets in the UAE, launching a regulated blockchain-based platform integrating decentralized finance (DeFi) elements. This collaboration introduces the MBG token, which offers holders benefits such as trading discounts, staking opportunities, and priority property access. The initiative aims to increase liquidity and broaden investor access to high-value real estate traditionally challenging to trade, with plans to expand asset tokenization to $10 billion in the near term.
The digital bond market is witnessing explosive growth, surging to $3.14 billion in 2025, led predominantly by Europe and Asia. Governments like Thailand are also entering this frontier by planning their own digital bond issuances, signaling broader public sector adoption. The real estate tokenization sphere is on a trajectory to reach a staggering $15 trillion by 2040, with emerging economies such as Japan, Israel, and Nigeria exploring trials to unlock liquidity and boost revenue streams through fractionalized asset ownership.
Additionally, a PYMNTS report reveals that 55% of U.S. consumers intend to use digital wallets for cross-border remittances, highlighting blockchain's growing role in streamlining international transfers. In regulatory news, South Africa has implemented the FATF Travel Rule for digital assets, mandating counterparties to share transaction information to bolster compliance and transparency in digital financial activities.