Polygon Powers Italy’s €25M Digital Bond Issuance in ECB Blockchain Trial

• By powering Italy’s €25M digital bond issuance, Polygon demonstrates its capability to enhance transaction speed, safety, and transparency in financial markets.
• The use of distributed ledger technology in Italy’s bond issuance underlines how tokenization can revolutionize asset management, paving the way for broader applications across various financial instruments.

According to a recent Intesa Sanpaolo press release, a €25 million ($27.22 million) bond with a four-month maturity was issued using distributed ledger technology (DLT) by Cassa Depositi e Prestiti SpA (CDP). This issuance, involving Intesa Sanpaolo, marks the first in Italy under the “FinTech” decree-law, which regulates the issuance and circulation of specific financial instruments in digital form.

Banks and asset managers globally are exploring the tokenization of real-world assets like bonds, credit, and funds to achieve faster, more transparent transactions, lower costs, and improved efficiency. In a LinkedIn post, Niccolò Bardoscia, head of digital assets trading and investments at Intesa Sanpaolo, stated:

This transaction demonstrates how public blockchains are a powerful technology for financial institutions, making transactions faster and safer.

Reiterating CNF updates, Bardoscia added that Polygon’s infrastructure empowers the future of finance with asset tokenization. He noted:

Tokenization is establishing a new standard for efficiency and automation in financial markets, and I believe this technological change will impact not only bonds but every asset class over the coming years.

This statement emphasizes that tokenization is setting a new standard for efficiency and automation in financial markets, with potential impacts across all asset classes in the future.

Furthermore, as featured in our coverage last year, Polygon joined the Bank of Italy to explore tokenized assets, with MATIC poised for massive growth in the market. Currently, Polygon powers Italy’s €25M digital bond issuance, driving Polygon (MATIC) to a price of $0.5208, with a decrease of 4.98% and an increase of 4.23% in the past week. See MATIC’s price chart below.