Pioneers in the Digital Capital Market - A conversation with Christian Forma (WIBank) about experiences, challenges and perspectives on token-based issuances.

Token-based securities are considered a key future topic for the financial market – but what does practical experience actually look like? In our interview with Christian Forma of Wirtschafts- und Infrastrukturbank Hessen (WIBank), we discuss the learnings from the bank’s first token-based issuance, regulatory requirements, technical challenges, and the role of public institutions in transforming the capital market. We also take a look at insights from the ECB trials and ask about expectations for market participants and regulators.

Question 1: What insights and advantages did WIBank gain from its first blockchain-based issuance (efficiency, transparency, etc.)?

Christian’s answer:

WIBank’s first blockchain-based issuance delivered valuable insights and clear benefits. Particularly noteworthy are the efficiency gains: through digitalization and automated settlement using the trigger solution, settlement time was reduced to T+0, significantly lowering settlement risk. The use of a public blockchain enables a fully traceable transaction history and clear ownership allocation at any time, which builds trust and facilitates process control. Many previously manual and time-consuming steps can now be digitized, reducing costs and operational risks. The insights gained provide important guidance for the targeted development of future projects.

Question 2: Were there specific requirements or obstacles regarding documentation and regulatory rules?

Christian’s answer:

There were indeed specific requirements and challenges, particularly regarding documentation and regulatory guidelines. Coordination with the responsible authorities and the legal classification of the digital product required a structured approach. The link between the traditional certificate and the digital token, as well as the design of transfer mechanisms, had to be clearly defined. Processes and technical solutions were tested in a proof of concept, with new digital workflows trialled alongside existing structures. The experience shows that regulatory and documentary aspects should be incorporated early into planning future initiatives.

Question 3: How was the project organized internally – did you have to build new competencies?

Christian’s answer:

The project was organized as a cross-departmental initiative involving close cooperation among various business units. For the success of the proof of concept, the combination of traditional capital markets expertise with digital capabilities was crucial. Knowledge in distributed ledger technology, smart contracts and digital payment processes was deliberately developed and complemented by external partners in technology, project management and law. Close coordination with these partners helped address the complex requirements of the test environment. Internally, teams received further training and interfaces were created to link the digital infrastructure with existing processes.

Question 4: Do you plan to conduct such digital issuances more frequently in the future or even integrate them fully?

Christian’s answer:

We see significant future potential in digital issuances and intend to expand and further integrate this form of capital market transaction over time. The experience from the proof of concept shows that digitalization offers numerous advantages, especially faster and more efficient processing as well as greater transparency and security. A major impulse comes from the ECB’s initiatives, particularly the “PONTES” project, which enables settlement of DLT-based securities transactions directly in central bank money. Once PONTES launches, new opportunities will arise for even more efficient and secure digital issuances. In the long term, we aim for full integration, although the pace of development will also depend on investor readiness and regulatory conditions.

Question 5: Which insights from the ECB trial do you consider especially valuable? What should be the next development steps in this context?

Christian’s answer:

The insights from the ECB trial are especially valuable to us because they demonstrate how digital settlement processes based on distributed ledger technology can increase efficiency and transparency in the capital market. The close linkage of securities and payments through DLT and smart contracts facilitates the integration of digital issuances into existing processes. With the Pontes and Appia projects, the ECB is providing important momentum for the future financial market by promoting settlement in central bank money and interoperability between different systems. For the next development steps, it is essential to further digitalize processes, optimize interfaces and create regulatory clarity. Integration of digital issuances will also depend on the acceptance and readiness of market participants.

Question 6: Which criteria were most important when selecting partner companies for the pilot project?

Christian’s answer:

The selection of partner companies focused on technological competence, legal expertise, innovative strength and the ability to collaborate closely. Working with external technology providers and consultancies was crucial to addressing the technical and process-related requirements of the proof of concept and gaining practical experience. Secure integration of smart contract solutions and a willingness to work flexibly and collaboratively were key selection criteria. Continuous coordination among all participants contributed significantly to the project’s success.

Question 7: Were there any technical challenges?

Christian’s answer:

Various technical challenges arose during the pilot project, especially due to the parallel use of traditional and digital infrastructure. Aligning the different systems and synchronizing processes created additional effort, particularly regarding same-day payment settlement and documentation. Integrating blockchain technology with existing payment processes required careful coordination and extensive testing. Implementing functions to control transferability and tradability of the token also presented technical particularities. The project demonstrated that introducing digital processes in the capital market environment involves challenges, but these can be addressed through close collaboration and continuous development.

Question 8: What kind of support would you like to see from market participants or regulators for future projects?

Christian’s answer:

For future projects, we would like to see greater openness among market participants toward digital innovation and a willingness to actively shape new technologies. From regulators, we expect clear and practical frameworks as well as constructive guidance to ensure that digital issuances can be implemented securely and efficiently. Common standards and intensive exchange are essential to successfully drive the digitalization of the capital market.

Question 9: What motivated you to participate in the trials?

Christian’s answer:

Our motivation was to gain practical experience with innovative technologies such as distributed ledger technology and to assess their potential for the capital market. Participation enabled us to test T+0 settlement in a realistic scenario and directly experience its impact on efficiency, transparency and risk management. We also wanted to gather early insights to further develop our processes and prepare the organization for future digital developments.

Question 10: What was the most rewarding aspect of your participation?

Christian’s answer:

The most rewarding aspect was gaining early hands-on experience—as a smart follower—with innovative technologies and digital settlement processes. This allowed us to identify optimization potential, further develop our organization and strengthen our role as an innovation driver in the market.

Question 11: Would you recommend others to participate in similar initiatives? Why or why not?

Christian’s answer:

Yes, I would recommend participating in similar initiatives. The digitalization of the capital market can only succeed if all market participants jointly test new technologies and develop standards. Given the geopolitical importance of an independent European financial market infrastructure, active involvement in such projects is crucial—especially in view of the development of central bank digital currency (CBDC) and the current dominance of US stablecoins. Participation offers the opportunity to gain practical experience, develop one’s organization and contribute to strengthening the European financial market.

About Christian Forma:

Christian Forma is Head of Treasury Promotional Business at Wirtschafts- und Infrastrukturbank Hessen (WIBank). He has over 25 years of experience in the capital markets – from derivatives trading to structuring. As a driver of digital innovation, he actively supports the transition toward token-based financial instruments.