Italy’s First Digital Bonds Issued on Ethereum Blockchain
Italian state bank Cassa Depositi e Prestiti, in collaboration with investment bank Intesa Sanpaolo, has successfully issued digital bonds valued at $27.2 million using the Polygon network on the Ethereum blockchain. This groundbreaking transaction is part of a pilot project initiated by the European Central Bank (ECB) to explore innovative solutions for wholesale settlements on the blockchain.
New Legislation Paves the Way for Digital Financial Instruments
This historic bond issuance in Italy comes in the wake of the adoption of a new law on financial technologies that regulates the issuance and circulation of financial instruments in digital form. The bonds offered by Cassa Depositi have a maturity date set for November 18, 2024, with a fixed coupon rate of 3.63% per annum. Intesa Sanpaolo, the sole investment partner in this pilot, facilitated the testing process.
Fast and Secure Transactions thanks to Public Blockchains
The funds were transferred on the same day using the Bank of Italy’s TIPS Hash Link tool, which streamlines communication between blockchains and traditional payment systems. Niccolò Barroso, head of digital asset trading and investments at Intesa Sanpaolo, expressed optimism about the influence of tokenization on various asset classes in the future. He highlighted that this initiative showcases the potential of public blockchains as a robust technology for financial institutions, improving transaction speed and security.
Italy to Tighten Regulatory Oversight on Crypto Market
Italy is gearing up to enhance its supervision over the crypto market by introducing fines of up to 5 million euros for fraudulent activities. Meanwhile, the Polygon network has become the fourth-largest blockchain in terms of tokenized asset value, trailing behind Ethereum, Stellar, and Mantle, according to Dune, an analytical platform.
Upcoming Transition to New Native Token POL
On September 4, the Polygon team will roll out a new native token under the ticker POL, replacing the current MATIC token. Presently, MATIC ranks 26th in the global cryptocurrency ranking with a market capitalization of $4.7 billion and a trading price of $0.5087. Despite a 5% decrease in the past day, MATIC has shown a 2.1% increase over the week.
