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German conglomerate Siemens has for the first time issued a blockchain-based digital bond denominated in euros. In an announcement, the corporation highlighted the benefits of using blockchain, including the opportunity for direct sale to investors.<\/strong><\/p>\n The largest industrial manufacturer in Europe, Siemens, announced it has become one of the first companies in Germany to issue a digital bond in accordance with the country\u2019s Electronic Securities Act which came into force in June, 2021.<\/p>\n The \u20ac60-million bond ($64 million) has a maturity of one year and is based on a public blockchain, that of Polygon, according to crypto media reports. Announcing the deal on Tuesday, Siemens emphasized certain advantages of employing a blockchain platform over traditional methods:<\/p>\n For instance, it makes paper-based global certificates and central clearing unnecessary. What\u2019s more, the bond can be sold directly to investors without needing a bank to function as an intermediary.<\/p>\n<\/blockquote>\n \u201cBy moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past, Corporate Treasurer at Siemens AG Peter Rathgeb was quoted as stating.<\/p>\n Germany\u2019s Electronic Securities Act allows organizations to issue blockchain-based digital bonds, Siemens pointed out. It also said it has sold the securities directly to investors without engaging established central securities depositories.<\/p>\n \u201cPayments were made using classic methods as the digital euro was not yet available at the time of the transaction,\u201d the press release noted. Hauck Aufh\u00e4user Lampe Privatbank AG acted as the bond registrar for the transaction, which was completed within two days, while Union Investment, Dekabank and DZ Bank invested in the bond.<\/p>\n \u201cThanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany,\u201d Peter Rathgeb also noted, adding that the corporation will continue to be actively involved in their development.<\/p>\n \u201cWith our innovative products and technologies, Siemens supports the digital transformation of its customers with great success. It is therefore only logical that we test and utilize the latest digital solutions in finance,\u201d added Ralf Thomas, the chief financial officer of Siemens.<\/p>\n \u201cWe are proud to be one of the first German companies to have successfully issued a blockchain-based bond. This makes Siemens a pioneer in the ongoing development of digital solutions for the capital and securities markets,\u201d the executive elaborated.<\/p>\n Europe is yet to comprehensively regulate its blockchain space. In 2022, key institutions in Brussels and member states reached an agreement<\/a> on the European Union\u2019s new Markets in Crypto Assets (MiCA<\/a>) legislation. MiCA is expected to enter into force in 2023 but businesses will have another 12 to 18 months to comply with it. A digital euro<\/a> is currently under development.<\/p>\nDigital Bond Issued Under Germany\u2019s Electronic Securities Act<\/h2>\n
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Siemens Vows to Drive the Development of Digital Securities in Germany<\/h2>\n