Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Siemens digital bond
Stock Market

Siemens digital bond: industrial giant offers to invest in blockchain-based securities

27.05.2023
2 min read

Digital bond: the advantages of a modern financial instrument

Siemens Corporation announced the sale of a security created on the basis of blockchain technology. The issue amounted to 60 million euros. The digital bond is offered for purchase directly by investors, without the use of financial institutions in the form of intermediaries.
Siemens is one of the three largest German companies by market capitalization. It issued its first digital bond and used the Polygon blockchain to develop it. After Siemens’ announcement, the token immediately went up – its price increased by 7.2% and reached $1.25.
The issuance of bonds for Siemens Corporation became possible in the summer of 2021 when Germany passed a law regulating operations with electronic securities. According to it, operations with debt securities developed on the blockchain are allowed in the country. It should be noted that the innovation in the legislation opens new opportunities for market participants. Digital bonds have a number of advantages:
– blockchain eliminates the need to certify paperwork for each country separately. Paperwork is reduced to a minimum;
– no need for custodian services, bonds are sold directly;
– there is no need to use banks as intermediaries to buy bonds.digital bondThe German company’s digital securities have already been purchased by a number of investors, including DekaBank. However, Siemens did not disclose the interest rate of the securities. It should be noted that the manufacturing giant from Germany has been working for some time on options for the use of blockchain technology for business development. In 2021, the company’s specialists, together with JPMorgan Bank, developed a service for payments based on blockchain. The system is used to carry out transactions between internal Siemens accounts, for example, to pay for the services of one division to another. Initially, the service was only available in dollars, but payments can now be made in euros.
Blockchain-based securities are gaining popularity around the world. The next step in this direction was the digital green bond issued by Hong Kong in early 2023. A total of $5.75 billion worth of securities were available to institutional investors. The bonds are available in dollars, euros, and yuan. This was the largest issue for the Asian region.
In January 2023, ABN Amro Bank of the Netherlands registered a digital bond for Midcorp. For Europe, this was the first case of blockchain-based paper licensing. The bond was sold for 450 thousand euros, after the purchase, the investor received a document of ownership, which was digitized in the form of a token. Analysts note that digital bonds fully correspond to traditional bonds, but in this case, their functionality is more efficient and transparent.

Tags: Stock Market
0
Previous Post The Fitch agency left Latvia's credit rating unchanged Next Post Is the world facing an imminent economic transformation?

You Might Also Like

stock tokens
Stock Market
Stock tokens of Benelux companies can be sold through the Dusk Network application
20.10.2020
Meta corporate bonds
Stock Market
Corporate bonds bring in US$8.5 billion for Meta
13.08.2023
AI development
Stock Market
AI development as a key driver of stock market growth
12.06.2024
tech giants
Stock Market
China’s tech giants are losing market value
14.03.2022
Airplane duties
Stock Market
The US imposes duties on aircraft from Europe
09.11.2020
australian bank ANZ
Stock Market
Australian bank ANZ plans share buyback
14.07.2024

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Analysts: Egypt’s economy to continue falling in 2023
  • Field of activity of the American Monsanto Company Corporation

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics