Siemens Issues First Blockchain-Based Digital Bond

  1. The first digital bond will be posted on a public blockchain following the German Electronic Securities Act. (eWpG).
  2. Siemens is a pioneer in the digital revolution of the capital and securities markets.
  3. The bond has a €60 million volume and an annual maturity.

In compliance with Germany’s Electronic Securities Act (Gesetz über elektronische Wertpapiere, or eWpG), Siemens has been named one of the first companies to issue a digital bond, according to related sources.

Notably, the bond is worth 60 million, has a one-year maturity, and is supported by a public blockchain. There are several advantages to issuing the bond on a blockchain compared to earlier procedures. 

For instance, it eliminates the need for central clearance and paper-based global certificates. In addition, the bond can be offered directly to investors without the assistance of a bank.

The company’s chief financial officer, Ralf P. Thomas, claims that Siemens successfully supports its customers’ digital transformation through cutting-edge goods and services.

Therefore, evaluation and application are the most recent digital financial solutions. Amid this development, Siemens is now recognized as a pioneer in creating digital solutions for the stock and capital markets.

It is vital to remember that since the Electronic Securities Act took effect in Germany in June 2021, blockchain-based digital bonds have been legal to issue. 

Siemens reportedly marketed the assets directly to investors without involving established central securities depositories, taking advantage of the new opportunities the Electronic Securities Act provided. 

Since the digital euro was not yet available at the time of the transaction, payments were made via conventional methods.

Siemens AG’s Corporate Treasurer, Peter Rathgeb, stated that they would actively pursue further development. He claims that transactions may be completed substantially faster and more effectively than when issuing bonds in the past by moving away from paper towards public blockchains for the issuance of securities. 

He also expresses gratitude for the productive collaboration with the project partners for helping Germany reach a significant turning point in developing digital securities.

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