Siemens issues €60M under Germany’s Electronic Securities Act
When a 175-year-old conglomerate decides to go the blockchain way, then it could be right to assume that the technology has the potential to be adopted in the times to come. While the crypto industry remains under the lens of scrutiny, Siemens decided to issue bonds worth 60 million Euros to three investors.
These include DZ Bank, DekaBank, & Union Investment. Siemens is now one of the first MNCs to issue bonds over the Polygon blockchain. The German Industrial Powerhouse conglomerate has done so under all the valid compliances. Bonds issued are covered under the Electronic Securities Act, which became effective in June 2021.
While the bond was issued on-chain, the proceeds towards the same were collected through a traditional banking system. What really makes a move by Siemens worth noting is that it has been able to issue bonds over the Polygon blockchain and avail of some important benefits one has only read about in theory.
For instance, no involvement of third-party or intermediaries. No one else was involved in the transaction, not even Polygon Labs. This enabled Siemens to execute the transaction faster and save costs on the transaction. Since the process was concluded over the internet, it remained paperless to contribute to the well-being of the environment. All-and-all, Siemens not only adapted to something modern, but it did so with the right intentions.
Peter Rathgeb from Siemens said that the company has been able to execute transactions faster by executing them on the blockchain, also making them efficient. Mihailo Bjelic from Polygon added that there was no third-party involved, as Polygon Labs stayed away from the transaction. This gives a hint that everything was done in a permissionless manner.
Regulators have been coming hard on the crypto industry for the last few months. Paxos had to cease the issuance of BUSD after an order was served to it by the New York Department of Financial Services. Kraken is a recent example, as it had to halt its staking services and pay a fine of $30 million to the US Securities & Exchange Commission.
No matter the situation, it appears that blockchain technology is here to stay, and open finance could soon be adopted by several companies.
MATIC has meanwhile jumped upwards by 40% in the last month. A remarkable one indeed, considering Ether could only rise by 10% during the same time.
It now remains to be seen if other companies will follow the trend of issuing digital bonds over the blockchain. Siemens has surely set a prime example of how one can benefit by moving toward the sphere of open finance.