KfW Makes Landmark Investment in Blockchain-Based Pfandbrief

Germany’s state-owned development bank KfW has entered the digital asset space with a €10 million investment in Berlin Hyp’s blockchain-based Pfandbrief. This marks the institution’s first foray into distributed ledger technology (DLT) securities as part of its digital transformation strategy.

The landmark transaction involves Germany’s first digital mortgage Pfandbrief, issued under the Electronic Securities Act (eWpG). With a total volume of €100 million and maturity set for July 2024, the move signals growing institutional acceptance of blockchain-based financial instruments.

KfW’s participation aims to stimulate secondary market development for DLT securities, with DekaBank serving as key infrastructure partner. The investment reflects broader European trends toward regulated crypto securities adoption.