Siemens becomes the first company to issue $64 million worth of digital bonds on a blockchain

Siemens' public blockchain-issued bonds will be set to mature within a year.
The bond issued through the Electronic Securities Act will allow them to be sold directly to the investor.
Circle's Chief Strategy Officer officially denied any regulatory move against the company.

The crypto market is slowly blending in with the traditional markets, and the same is visible in the companies in the TradFi industry. While the crypto market is dealing with its internal issues, external companies such as Siemens are setting their foot within the industry.

Siemens takes the top spot

In a press release on Tuesday, Siemens announced it had become the first to issue a digital bond in Germany. In accordance with the country's Electronic Securities Act, the bond will be issued with a maturity of a year on a public blockchain.

With a set volume of 60 million Euros or $64 million approximately, the digital bond will be sold directly to the investors. This means that the company will not need any bank in the country to act as an intermediary.

Commenting on the same, the Corporate Treasurer at Siemens AG, Peter Rathgeb, stated.

"By 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. Thanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany."

Rathgeb further added that the company would be focusing on driving the development of similar options. The company leveraged on the Electronic Securities Act that came into effect in June 2021.

Siemens has enabled investors to buy the bonds without the need for any established central securities depositories. This will also result in the transaction being completed in the span of two days.

Circle denies any SEC action

TradFi is joining hands with the crypto market to expand and leverage the underlying technology. On the other hand, the crypto market is currently facing the brunt of the rumors initiated by other players within the industry. The most critical of the same is the response given by USD Coin (USDC) issuer Circle’s Chief Strategy Officer, Dante Disparte.

Putting an end to all the rumors flying around in the industry, Disparte confirmed that the company had not received a Wells notice. A Wells notice is considered to be the first notification by the US Securities and Exchange Commission (SEC) about the possible incoming charges against the entity. This was acknowledged by Fox reporter Eleanor Terett, who tweeted,

Here is the response from @circle. I went with the word of several trusted sources on this. I apologize for the mistake @ddisparte. https://t.co/NjyD57PDuZ
— Eleanor Terrett (@EleanorTerrett) February 14, 2023

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.