Intesa Sanpaolo fully underwrites CDP's first Digital Bond on Blockchain

Intesa Sanpaolo has fully underwritten the first “Digital Bond” on Blockchain issued by Cassa Depositi e Prestiti (CDP), with a nominal value of €25 million, a duration of four months and a fixed coupon of 3.633% on an annual basis.

Intesa Sanpaolo and CDP are the first financial institutions in Italy to conclude a transaction with these characteristics.

The security was issued via distributed ledger technology and cash flow settlement took place in euro through the Bank of Italy’s "TIPS Hash Link" solution, as part of the trial launched by the ECB to identify new solutions for the settlement of wholesale transactions in central bank money for transactions carried out on DLT.

The transaction confirms the Intesa Sanpaolo Group's focus on digital expertise, which is called upon to contribute to the innovation of capital markets, also through new technological infrastructures, for an increasingly effective support to businesses and financial institutions.

The blockchain is a specific type of what is referred to as “Distributed Ledger Technology” and consists of an open, distributed digital ledger capable of storing information through appropriate transactions in an ordered and immutable sequence of blocks, in a secure and verifiable manner, by applying the appropriate cryptographic techniques.

Distributed Ledger Technologies (DLT) are systems based on a distributed ledger, i.e. a repository of information in which transactions are recorded and which is shared by a number of DLT network nodes and is synchronised between them using a consensus mechanism.