Siemens, a multinational German company that is a leader within engineering and technology, was one of the first to issue a digital bonds in Germany. Public blockchain. Siemens now counts itself in the elite club of German enterprises because of this accomplishment. It has a market value of 60 million euros (or sixty-4 million dollars), and a maturity period of one year. This is all according to Germany’s Electronic Securities Act.
The announcement, which was made on February 14th, stated that the bond was directly issued to investors DekaBank, DZ Bank and Union Investment, without the need for international certificates or central clearing. Siemens said that the new approach was faster and more efficient than traditional methods for issuing bonds.
Siemens emphasized the advantages of digital bonds over traditional bond-issuing techniques in its announcement. The company claims that issuing a digital bond has many benefits, in comparison to traditional bond-issuing procedures. As a result of the change, central clearance and paper-based international certifications will no longer be necessary. The bond can be issued directly to investors without the involvement of an intermediary financial institution, such as a bank.
Although the transaction was done using traditional payment methods rather than the digital euros at the time, it was completed in just two days. Siemens has set itself the lofty goal to be the industry leader for digital solutions in the capital and securities market. This is a lofty goal.