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, 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.

Martijn Siebrand, Digital Assets at ABN AMRO, stated, “With the implementation of the ERC3643 standard, we have successfully embedded compliance rules into our digital bonds. They can even seamlessly and compliantly interact with other applications on the public network thanks to native interoperability. This marks the beginning of a transformative journey, where the possibilities for innovation in the financial sector are boundless.”

Luc Falempin, CEO at Tokeny, commented: “ABN AMRO’s management team demonstrates a visionary commitment to ushering in a new era of transparency, efficiency, and accessibility in the financial world. As we witness an increasing number of institutions recognizing the true potential of public blockchains to deliver tangible benefits to their clients and the recognition of the market standard ERC3643, we are thrilled and honored to work with institutional pioneers like ABN AMRO to accelerate tokenization adoption.”

Colin Butler, Global Head of Institutional Capital at Polygon Labs, added: “With institutions like ABN AMRO adopting Polygon’s public blockchains for digital bonds, it is clear that the technology built by Polygon Labs is poised for greater web3 adoption. This creates an open, interoperable environment for on-chain compliance, unlocking endless future possibilities.”

Source: Tokeny