Siemens' digital bond was traded on the regulated trading platform known as 360X.
The financial landscape is shifting, and the latest development comes from Siemens, who recently executed the first-ever secondary market transaction of a digital bond on a regulated German trading venue - 360X [1][2]. This groundbreaking move signifies a significant step forward in the institutional adoption of blockchain-based securities.
360X, a platform regulated by BaFin and holding one of only four DLT Pilot Regime licenses in Germany, played a pivotal role in this trade [1][2]. The transaction involved major institutional players such as DekaBank and Union Investment, with DekaBank also serving as both participant and founder of SWIAT, the permissioned blockchain settlement network underlying the bond [1][2].
The trade settled over the SWIAT blockchain network, leveraging distributed ledger technology (DLT) for efficient and automated settlement while maintaining regulatory standards [1][2]. This marks a significant stride towards bridging the gap between regulatory requirements and operational innovation in the digital asset ecosystem.
One of the key benefits of this trade is the enhancement of liquidity and investor appeal. According to Siemens’ Group Treasury, enabling secondary market trading of their digital bond increases liquidity and portfolio flexibility, broadening the investor base and supporting growth of the digital bond market [1].
Another hurdle addressed by this trade is the lack of secondary markets for tokenized digital assets. Mainstream European regulations still require a Central Securities Depository (CSD) for secondary market trading, which 360X provides as it integrates with several types of settlement solutions [1]. This allows for compliant trading and overcomes the traditional requirement for a CSD, a factor that has held back the growth in tokenized digital assets.
The successful trade sets a precedent, establishing an efficient, liquid, and compliant secondary market for institutional DLT-based assets. It signals accelerated adoption of tokenized securities in capital markets and offers a model for other digital asset issuances [2].
In summary, the Siemens digital bond trade on 360X represents a milestone in institutional adoption of blockchain-based securities, combining regulatory approval, operational innovation, and enhanced market liquidity in a German context [1][2]. With 360X providing a variety of trading solutions, it seems the future of digital bond trading is looking increasingly promising.
[1] https://www.360-x.com/ [2] https://www.union-investment.de/ [3] https://www.dekabank.de/ [4] https://www.siemens.com/ [5] https://www.e-wpg.de/ [6] https://www.bafin.de/ [7] https://www.deutsche-boerse.com/ [8] https://www.commerzbank.com/ [9] https://www.swiat.de/ [10] https://www.bafin.de/de/regulierung/dlp/dlp-pilot-regime/ [11] https://www.boerse-frankfurt.de/ [12] https://www.boerse-berlin.de/ [13] https://www.boerse-stuttgart.de/ [14] https://www.boerse-hamburg.de/
- The Siemens digital bond trade on the regulated German platform 360X is a significant development in the financial landscape, marking a step forward in the institutional adoption of blockchain-based securities.
- 360X, with its DLT Pilot Regime license, played a crucial role in the transaction, enabling compliant trading and bridging the gap between regulatory requirements and operational innovation.
- The successful trade involved major institutional players, such as DekaBank and Union Investment, and leveraged blockchain technology for efficient and automated settlement of assets.
- This trade offers insights into the potential growth of the digital bond market, addressing hurdles like the lack of secondary markets for tokenized digital assets and boosting liquidity for institutional DLT-based assets.
