Cryptocurrency security developments captivate interest
In a groundbreaking move, German defense startup Donaustahl has successfully issued a cryptosecurity bond, marking a significant step in the integration of crypto and blockchain technology in the financial sector.
Donaustahl, renowned for its production of FPV drones, electronics, and munitions, widely used in Ukraine, faced difficulties in obtaining loans from banks due to statutes prohibiting financing of weapons and ESG criteria. To circumvent these challenges, the company turned to the world of cryptocurrency securities.
The cryptosecurity issuance, managed by technology service provider ecrop, allows Donaustahl to filter investors by origin and control transfers on the secondary market. Ecrop, which maintains a decentralized register - a blockchain - for storing and transferring the electronic securities as tokens, used a private version of Ethereum for this purpose.
The Donaustahl bond will be interest-bearing, with up to 8.4% annually. Investors can use the interest to recoup a portion of the future taxes and debts they are now financing with "special assets" for the armament.
Stefan Thumann, CEO of Donaustahl, decided to issue a bond as a cryptocurrency security to raise funds from its community. This move not only provides an alternative funding source but also offers investors an opportunity to support the growth of the defense industry.
Meanwhile, ecrop is focusing on integrating other payment methods, namely Bitcoin and other cryptocurrencies, into its platform. This expansion aims to make crypto securities more accessible and attractive to a wider audience.
In addition to bonds, there will also be stocks as crypto securities, which can be listed and traded on platforms like 21.x. This development could revolutionise the traditional stock market by introducing a new level of transparency and efficiency.
The Future Financials Act allows issuers of such stocks to give their own shares multiple voting rights, making crypto securities even more attractive. This feature could potentially lead to a more democratic and inclusive investment environment.
Other European defense startups seeking financing through ecrop's tacct platform and the issuance of crypto securities include companies like Donaustahl. Michael, from tacct, states that they have 20 companies in the pipeline for financing through the platform, most of which are related to drones, semiconductors, ammunition, software, and AI systems.
The tacct platform, managed by ecrop, facilitated this issuance and launched a financing platform for European defense startups. This initiative could pave the way for a new era of funding and investment in the defense sector.
Moreover, ecrop's OmniPersona app allows users to use their KYC verification for other apps or platforms, potentially solving one of the biggest problems in the world of crypto securities. This feature could streamline the verification process and make investing in crypto securities more convenient.
As the world continues to embrace digital currencies, a digital euro could make everything "much simpler," according to Michael. This could make payments "simpler, faster, and cheaper." With the success of Donaustahl's cryptosecurity bond, it seems that the future of financing in the defense sector is indeed digital.
Donaustahl also plans to manufacture FPW quadcopters entirely in Germany, with a capacity of 500,000 units per year. This move could boost the German economy and create jobs in the defense sector.
In conclusion, the issuance of the Donaustahl cryptosecurity bond marks a significant milestone in the integration of crypto and blockchain technology in the financial sector. This move could pave the way for a new era of funding and investment in the defense sector, making it more accessible and efficient.
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