Cryptocurrency pioneered in Germany gains momentum
In a groundbreaking move, German defense startup Donaustahl has issued a crypto bond last week, marking a significant step in the integration of blockchain technology and the defense industry. The bond was issued through the digital platform tacct, a new platform for investing in European defense startups.
Donaustahl, known for producing FPV drones, electronics, and other defense-related products, has faced difficulties in raising capital due to banks' hesitance to finance war weapons and investors following ESG criteria that disallow weapons. The crypto bond, however, is seen as a faster and more efficient method for Donaustahl to raise money from its community.
The bond functions as a revenue-dependent security, offering up to 8.4 percent interest per annum. This innovative approach allows investors to reclaim part of the future taxes and debts they are now using to finance rearmament through "special funds."
The bond issuance is not without its regulatory considerations. The eWPG requires crypto security registrars to be able to reverse transactions. ecrop, the private blockchain platform used by Donaustahl, can rectify transactions without affecting the ledger's immutability, ensuring compliance with these requirements.
In addition to the Donaustahl bond, tacct also plans to finance 20 other European defense startups. Michael from tacct mentioned having 20 companies in the pipeline, most of which are producing defense-related products like drones, semiconductors, ammunition, software, and AI systems.
ecrop offers OmniPersona, an app for transferable identity verification of customers. This app, launched by ecrop, allows users to use their KYC verification for other apps or platforms. This could potentially solve one of the biggest problems of crypto securities by eliminating the need for multiple verifications.
Finally, ecrop allows customers to store keys on their smartphones, and wallets can be restored through a renewed KYC process. This added layer of security ensures the safety of investors' assets while using the tacct platform.
As the defense industry continues to evolve, the integration of blockchain technology and innovative financing methods like crypto bonds could pave the way for a more efficient and secure future.
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