Italy's top bank participates in ECB trial to issue €25 million digital bond on Polygon

According to Mars Finance, Italy's state-owned development bank Cassa Depositi e Prestiti SpA (CDP) and the country's largest lender Intesa Sanpaolo completed a digital bond issuance using blockchain on Thursday. CDP issued the 25 million euro bond on the Ethereum-based Polygon (MATIC) network with a term of four months, with Intesa Sanpaolo as underwriter and sole investor.

Cash flows are settled in euros on the same day (T+0) using the Bank of Italy's "TIPS Hash Link" tool, which enables interoperability between blockchain and traditional payment rails. The issuance is part of the European Central Bank's (ECB) attempt to conduct wholesale legal currency settlement on the blockchain.