Financial markets in the 2025 financial year
Safe harbour in a challenging environmentKfW is one of the largest and most active participants in the international money, capital and derivatives market. Thanks to investor confidence, it achieved funding of around EUR 71 billion through the issuance of bonds in 2025 despite difficult geopolitical conditions. A total of 160 transactions were carried out in ten different currencies. Notably, with 18 green bond transactions in eight currencies, KfW was able to generate EUR 14 billion, which - contrary to this year’s market trend - corresponds to an increase compared to the previous year and is an important signal for climate action.
Important impetus for the digitalisation of the financial market in Europe
By consistently continuing its digitisation efforts and innovative treasury activities, KfW is strengthening its competitiveness and providing important impetus for Frankfurt and Germany as a whole as a financial centre, as well as strengthening Europe's digital sovereignty.
More details on the focus areas and transformation areas of 2025 can be found below:
Provide a variety of currencies
KfW offers investors high liquidity in the core currencies of the euro and US dollar and, in 2025, bonds in a total of ten currencies. An emerging market segment was the Hong Kong dollar, which ranked after the pound sterling and the Australian dollar in the currency ranking. The Swiss franc made a successful comeback after 15 years. As a result, investors benefited from broad currency diversification when searching for alternative currency reserves.
Digitalisation of bonds
The year 2025 was particularly marked by first-time investments in selected distributed ledger technology (DLT) based securities: DLT-based Pfandbrief issues from Berlin Hyp and DekaBank as well as a DLT-based bond from NRW.BANK. In addition, there were two issuances with digital central bank money in Swiss francs as part of the Swiss National Bank’s “Helvetia project”.
Designing digital infrastructure
In order to promote the further development of the DLT-based capital market, the findings were published in a paper together with KPMG and other project partners. KfW is also supporting the Regulated Layer One (RL1) initiative to establish an open, interoperable and pan-European blockchain infrastructure for digital assets together with leading European financial institutions.
Promoting climate action
KfW relies on green bonds as the core of its sustainable funding strategy. In 2025, it achieved the second-highest annual new issue volume since 2014 - a positive signal for climate action that stands against the global market trend. Since 2014, a total of around EUR 97 billion has been raised via green bonds in around 150 transactions and 14 currencies (as at the end of 2025). KfW also published its 2025 Green Bond Allocation / Impact Reports.
Focus 2026: Standardisation on the way to scalability
KfW will continue its innovation journey in 2026: The issue of the third DLT-based bond is planned. This security focuses on payment processing and interoperability - further testing the technological and legal frameworks. In addition, digitalisation potentials are being assessed along the entire security life cycle, for example through the use of smart contracts. In its role as an enabler and driver, KfW transparently shares the findings with the market in order to promote a scalable DLT ecosystem.
Outlook for funding in 2026
In 2026, KfW plans to borrow EUR 75 to 80 billion from the international capital markets to fund its promotional business. It will offer liquid products in a wide range of currencies to investors worldwide and continue its intensive dialogue. The promotional bank thus remains one of the most active and largest international issuers of green bonds: in 2026 KfW intends to issue “Green Bonds - Made by KfW” of up to EUR 15 billion in various currencies.
Legal notice:
The information contained in this online Annual Report 2025 is based on KfW’s Financial Report 2025, which you can download here. Should this online Annual Report 2025, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2025 takes priority.
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