German technology giant Siemens has successfully issued its second digital bond, valued at €300 million, utilizing the SWIAT permissioned blockchain. This bond, classified as a crypto security under Germany’s Electronic Securities Act (eWpG), marks the largest eWpG bond issuance to date. The one-year bond was settled within minutes using Germany’s Trigger solution, which automates central bank payments through the TARGET 2 system—a significant improvement over Siemens’ previous €60 million bond issued on the Polygon blockchain, which took two days to settle.
The issuance is part of the European Central Bank’s (ECB) ongoing trials on wholesale Distributed Ledger Technology (DLT) settlement. Ralf P. Thomas, Siemens’ Chief Financial Officer, highlighted that this digital bond issuance underscores the company’s commitment to driving digital innovation in financial markets.
Siemens collaborated with several key investors, including DekaBank, BayernLB, DZ BANK, Helaba, and LBBW, with Deutsche Bank handling settlement. DekaBank also served as the bond registrar, tracking asset holders for the digital bond.
The rapid settlement time showcases the potential of blockchain technology in transforming financial markets. As the tokenized asset market continues to grow, with projections suggesting it could reach $1.3 trillion to $30 trillion by 2030, major companies like Siemens are positioning themselves at the forefront of this digital transformation.
In related industry trends, while some experts, like Jamie Coutts of Real Vision, offer more conservative estimates, forecasting the tokenized asset market to reach $1.3 trillion by 2030, others, including McKinsey & Company and Citigroup, predict significant growth in this sector. As the market evolves, companies like Goldman Sachs are preparing to launch new tokenization products, driven by increasing client demand and the promising future of tokenized real-world assets.
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