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Italy's Leading Banks Issue €25M Digital Bond on Polygon in ECB Blockchain Trial

Italy's major banks issue a €25M digital bond on Polygon under new digital asset laws, part of the ECB's blockchain trial for fiat money settlement.

Italy's state-owned development bank Cassa Depositi e Prestiti SpA (CDP) and the country's largest lender, Intesa Sanpaolo, have made history by completing a €25 million digital bond issuance on the Polygon blockchain. This groundbreaking transaction marks the first digital bond issuance under Italy's new digital asset regulations and is part of the European Central Bank's (ECB) initiative to explore blockchain technology for wholesale fiat money settlement.


Polygon logo representing the blockchain network used for Italy's €25 million digital bond issuance.
Italy's top banks issue €25M digital bond on the Polygon blockchain as part of ECB's blockchain trial.

Key Points:


Historic Transaction:

  • CDP and Intesa Sanpaolo issued a €25 million bond on the Polygon blockchain.

  • This is the first digital bond issuance under Italy's "FinTech" decree-law.


Blockchain and Settlement:

  • The bond was issued on the Ethereum-based Polygon network.

  • Cash flow was settled in euros using the Bank of Italy's "TIPS Hash Link" tool for blockchain-traditional payment interoperability.


Participants and Roles:

  • CDP issued the bond, while Intesa Sanpaolo acted as the underwriter and sole investor.

  • The transaction aligns with ECB's initiative to trial blockchain for fiat money settlement.


Advantages of Tokenization:

  • Tokenization aims to enhance transaction speed, transparency, and efficiency.

  • It offers potential cost savings and operational benefits in financial markets.


Industry Perspective:


  • Niccolò Bardoscia of Intesa Sanpaolo highlighted the transformative potential of blockchain in finance.

  • Tokenization is expected to impact various asset classes beyond bonds.



The successful issuance of a €25 million digital bond on Polygon by Italy's top banks signifies a major step towards integrating blockchain technology into traditional finance. This pioneering transaction not only showcases the operational benefits of tokenization but also paves the way for broader adoption across different asset classes. As financial institutions continue to explore blockchain solutions, the future of finance promises to be more efficient, transparent, and automated.


Source: Coindesk

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