Siemens is the latest corporate to venture into digital securities, issuing a €60 million ($65m) one year bond on the Polygon public blockchain. The issuance was organized by Hauck Aufhäuser Lampe Privatbank, which acted as bond registrar and provided the digital asset custody solution for the keys. DekaBank, DZ Bank, and Union Investment bought in the bond.
The tokenized bond was issued under Germany’s eWpG legislation for digitally native electronic securities that was passed in mid-2021. The legislation supports both centralized ledgers and distributed blockchains. The Deutsche Börse has used its D7 platform for several issuances, but so far, they have been on a centralized ledger.
In addition to providing a shared ledger which reduces the need for reconciliations, the blockchain securities are issued directly to investors sidestepping the cost and need for intermediaries.
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