TL;DR
- Siemens has issued a €300 million digital bond on the SWIAT private blockchain, making it the largest eWpG bond to date.
- The bond was settled automatically within minutes using the Bundesbank’s Trigger solution, almost completely eliminating settlement risk.
- The issuance supports the European Central Bank (ECB) and Bundesbank’s trials on distributed ledger technology (DLT) in the digital financial market.
Siemens continues to work on the digitalization of financial markets. The company has issued a new digital bond valued at €300 million. This bond, with a one-year maturity, has been registered under Germany’s Electronic Securities Act (eWpG), following the success of the company’s first digital bond issuance last year. The company is diligently working on the development of advanced digital solutions for capital and securities markets.
The bond was settled using the SWIAT private blockchain and the Trigger solution provided by the Bundesbank. This technology enabled the settlement to be completed fully automated within minutes, in contrast to the two-day settlement process required for the previously issued €60 million digital bond. Thanks to this efficiency improvement, the settlement risk has been almost entirely eliminated for all parties involved.
The launch of the digital bond is part of Siemens’ strategy to support the European Central Bank (ECB) and the Bundesbank’s trials aimed at evaluating the viability of distributed ledger technology (DLT) in the digital financial market.
Siemens Revolutionizes Traditional Financial Systems
In the transaction, DekaBank acted as the bond registrar, while BayernLB, DZ BANK, Helaba, and LBBW participated as investors. Deutsche Bank handled the settlement in central bank money via the Bundesbank Trigger Solution. This event represents the largest eWpG bond to date.
The tokenized asset market continues to evolve, with Siemens positioning itself as a key player in the digital transformation of the financial sector. Despite varying projections about the future growth of the tokenized asset market, the success of this issuance contributes to building new cutting-edge financial systems.
