Enquired – digital Pfandbrief by Berlin Hyp

Just as with any conventional, document-based mortgage Pfandbrief, the main benefit of our Blockchain Pfandbrief lies in the reliable and cost-effecient refinancing of real estate loans secured by mortgage liens. This is hardly surprising, as digital Pfandbriefe are subject to the same legal requirements as those issued in traditional formats. The main advantage compared to these is the faster settlement and thus the shorter period in which interim funding is required.

We at Berlin Hyp are very happy with the transaction. Of course, the preparation took a lot of time. But everything went smoothly afterwards. During the marketing phase, we were able to convince many investors to start the necessary new product process, the spread was attractive at mid-swap + 15 bp and the settlement via the private SWIAT blockchain with the involvement of the cover pool monitor went so easily that we can well imagine further reducing the T+2 on this occasion.

In order to broaden the investor base for digital, blockchain-based Pfandbriefe, they must receive the same treatment as their documentary counterparts. Listing on a regulated stock exchange segment and, building on this, ECB eligibility are particularly important here. If this is the case, LCR-eligible issues are also conceivable. This will make digital Pfandbriefe interesting for bank investors in particular.

Yes. Of course, for the time being traditional formats will prevail. Over time, however, more and more investors should be able to buy crypto securities. Once the aforementioned issues have been resolved and the outstanding questions surrounding the risk weighting of digital assets issued on public blockchains have also been clarified, there will be little to stop a digital future for the Pfandbrief. In the medium to long term, the expected gains in efficiency and transparency should tip the balance here.