German industrial giant Siemens issues its first digital bond on a blockchain - InsideBitcoins.com

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Siemens, the industry giant in the German market, has issued the country’s first digital bond in accordance with the country’s electronic securities law.

What: Siemens has issued the first German digital bond on a blockchain, qualifying the company to be the first issuer of the product in Germany while establishing itself as a leader in the ongoing digital transformation of the capital and securities markets.
Why: This step eliminated reliance on global paper certificates and central clearing procedures
What then: Digital bonds will be sold directly to investors without the involvement of central depositors of securities

German industrial magnate Siemens has announced its first digital bond under the country’s electronic securities law (Gesetz Gesetz über elektronische Wertpapiere, eWpG), noting that it has a one-year maturity and is backed by a public blockchain, according to the official press release.

A pioneer in the field of continuous work # Numeric conversion Capital and stock markets: @employee Is one of the first companies in Germany to issue #retweet based on the audience # Blockchain. Find out more 💡 👇 https://t.co/v1ctLGZnDT

– Siemens press office (@siemens_press) February 14, 2023

From the report, the value of digital bonds amounts to 60 million euros, which qualifies the company to be the number one issuer of the product in Germany, and cements its position as a leader in the ongoing digital transformation of the capital and stock markets. Commenting on the matter, Siemens Chief Financial Officer Ralph P. Thomas said:

With our innovative products and technologies, Siemens supports the digital transformation of its customers with great success. Therefore, it makes sense that we test and use the latest digital solutions in finance as well. We are proud to be one of the first German companies to successfully issue blockchain-based bonds. This makes Siemens a leader in the continuous development of digital solutions for the capital and securities markets.

Issuing a digital bond on a public blockchain means eliminating paper global certificates and centralized clearinghouse procedures. Investors can buy digital bonds directly without the intervention of central securities depositors such as banks. This means that they are [investors] They will enjoy the traditional payment directly into their own bank account. With this development, Siemens has taken advantage of the power of emerging possibilities offered by the German Electronic Securities Act to bring securities directly to investors. Thus, this move defies the traditional times when payments were made via traditional methods because the digital euro did not exist yet during the transaction. During this time, transactions will be completed within two days.

Along with CFO Peter Rathgeb, also Siemens Treasurer, commented on the development: “By moving away from paper and towards public blockchains for issuing securities, we can execute transactions faster and more efficiently than when issuing bonds in the past. Thanks to our successful cooperation with our project partners, we have reached an important stage in the development of digital securities in Germany.” Rathgeb also emphasized the company’s commitment to actively driving continuous development.

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