There is a multi-trillion-dollar industry out there.
Valuable but illiquid privately held assets worth trillions of dollars can be converted into digital tokens on the blockchain. Using security tokens to connect traditional finance and blockchain technology is a sensible approach that benefits both.
Although the security token offering market is still in its early stages, it has the potential to disrupt the finance world as we know it. Multiple companies, banks, and institutions are already introducing tokenized financial assets.
To gain a better understanding of what has already been achieved in this field, with this report we will examine some of the most significant examples within the industry.
Siemens Issues Blockchain-Based Euro-Denominated Bond on Polygon Blockchain
Siemens, a German conglomerate and the largest industrial manufacturer in Europe, has issued a tokenized bond denominated in euros using blockchain technology for the first time.
The bond, valued at €60 million, was issued on the public blockchain platform Polygon in compliance with Germany’s Electronic Securities Act.
Siemens highlighted the advantages of using blockchain, including the elimination of paper-based global certificates and central clearing, and the ability to sell the bond directly to investors without the need for an intermediary bank. This move represents one of the first digital bond issuances in Germany and could pave the way for more companies to utilize blockchain technology for their financing needs.
Euro stablecoin launched in Finland, claims to be the first approved in the EU
According to a report by Cointelegraph, a Finnish company has launched a stablecoin called “EUROe,” which is backed by the euro and is purportedly the first and only EU-regulated crypto stablecoin. The company has received a license from the Finnish Financial Supervisory Authority (Fin-FSA). Each EUROe token is backed by at least one fiat euro held in a European financial institution or bank that is separate from Membrane Finance, the company behind the stablecoin.
The company believes that EUROe will facilitate near-instant and low-cost payments, in contrast to the high cost and slow speed of traditional finance. Membrane Finance CEO Juha Viitala hopes that the regulated stablecoin will encourage more Europeans to use decentralized finance (DeFi) applications and grow their wealth.
The EUROe will initially be available on Ethereum, with support for additional blockchain networks planned for the future.
Credit Suisse, Deutsche Bank in Taurus digital assets $65m funding
Taurus, a digital asset infrastructure company based in Switzerland, has raised $65 million in a Series B funding round led by Credit Suisse. The funds will be used to support the company’s growth, including hiring top engineering talent and establishing new offices in Europe, the UAE, the Americas, and Southeast Asia to better serve clients. The funding round included new investors such as Deutsche Bank, Pictet Group, and Cedar Muni Ventures, as well as existing backers Arab Bank Switzerland and stock-listed real estate group Inventis.
“We are proud to welcome such high-profile investors and benefit from their expertise to further develop one of the richest platforms in the industry, covering any type of digital assets, way beyond cryptocurrencies,” Taurus co-founder and managing partner Lamine Brahimi said.