Linklaters advises DekaBank on its first crypto securities issue and on a registered green bond on the blockchain
Linklaters has comprehensively advised DekaBank on its first blockchain-based crypto securities issuance on Deka's SWIAT securities platform. In addition, shortly before, Linklaters had already advised DekaBank on a similarly groundbreaking transaction in connection with registering and settling a digital registered bond, which also took place on Deka’s SWIAT securities platform.
Upon completion of its first crypto securities issuance, DekaBank also started to carry out the activities necessary to maintain a crypto securities register. Bearer bonds were issued on the blockchain-based platform.
A crypto security is a type of electronic security. It differs from traditional securities in that its issuance no longer requires that a paper certificate be issued. Crypto securities are registered decentrally in a blockchain-based crypto securities register. Consequently, the individual counterparties deal directly with each other, usually based on distributed ledger technology (DLT) without the involvement of a central securities depository. The data is logged on Deka's SWIAT securities platform and stored in a tamper-proof manner.
Groundbreaking transactions completed using DLT
Linklaters had already previously advised DekaBank on registering and settling a digital registered bond on Deka’s SWIAT securities platform. When completing the transaction, a new function of the blockchain-based platform was launched.
Vasakronan AB and DekaBank negotiated and entered into this green registered bond, the proceeds of which are used exclusively in accordance with the Green Bond Principles of the International Capital Market Association (ICMA), on firstwire’s marketplace. In addition to an issuer and an investor, registered bonds require a registrar. DekaBank will assume this function. As a result of the function of registrar being introduced, the technical groundwork for issuing and trading in electronic securities has already been laid on Deka's SWIAT securities platform.
In the case of digital registered bonds, each assignment of such bonds is recorded on Deka's SWIAT securities platform. Thus, each time an assignment is made, the registrar will be automatically informed within seconds and the register will be updated, without any further intervention being required. On Deka's SWIAT securities platform, processes that otherwise take one to two weeks are completed in seconds.
The Linklaters team was led by Sebastian Dey (Counsel, Capital Markets). Further team members are Christian Storck (Partner, Capital Markets), Andreas Dehio (Partner, Regulatory, Frankfurt), Michael Leicht (Partner, TMT) and Florian Reul (Head of FinTech Germany, Managing Associate, Regulatory).
