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
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
