Crypto security: Siemens relies on Polygon

From a current one press release shows that on February 13, Siemens AG issued a crypto security for the first time in accordance with the Electronic Securities Act, eWpG for short. The issue volume of the digital security is 60 million euros. The private bank Hauck Aufhäuser Lampe acted as registrar and paying agent for the transaction. DekaBank, DZ Bank and Union Investment invested in the bearer bond.

Polygon and digital securities

Not only in the NFT sector, but also in digital securities, the Polygon blockchain is being used more and more frequently, as is now the case with the Siemens issue. Above all, the low transaction costs make Polygon more attractive than Ethereum for many applications.

The private keys are secured by Hauck Aufhäuser Lampe Privatbank AG’s in-house crypto custodian, Hauck Aufhäuser Digital Custody (HADC). Due to this structure, no processing via a central depository or a market maker was necessary. The parties were thus able to trade directly with each other bilaterally and process the paper via the register.

Public blockchains have a clear advantage

The Head of Digital Assets at Hauck Aufhäuser Lampe, Simon Seiter, confirms that “both industrial and financial companies are convinced of a decentralized structure in the capital market and see serious potential in it”.

In addition to the potential efficiency and cost advantages for the players involved, this emission sends an important signal. On the one hand, that the newly created eWpG is actually used. With crypto securities according to the eWpG, a German special path has been taken to enable regulatory advantages, especially compared to security tokens.

On the other hand, such an issue strengthens the reputation of cryptocurrencies among traditional financial service providers. By relying on a public and not a private blockchain, the partly crypto-critical voices from the banking world are being led ad absurdum. A bank executive whose financial institution issues digital securities on Polygon cannot be against cryptocurrencies in the same breath without discrediting themselves. Accordingly, it is to be hoped that more DAX corporations and banks will adopt such a progressive attitude towards public token infrastructures.