Siemens issues €60M digital bond on a public blockchain

German engineering and exertion elephantine Siemens has go 1 of the archetypal companies successful Germany to contented a integer enslaved connected a nationalist blockchain, worthy €60 million, with a maturity of 1 year, successful accordance with Germany’s Electronic Securities Act.

According to the announcement, the enslaved was sold straight to investors specified arsenic DekaBank, DZ Bank, and Union Investment, without the request for cardinal clearing and paper-based planetary certificates. Siemens noted that the process enabled transactions to beryllium executed overmuch faster and much efficiently than accepted bond-issuing methods. 

Siemens emphasized the benefits of utilizing integer bonds implicit accepted bond-issuing methods successful its announcement. According to the company, “Issuing the enslaved connected a blockchain offers a fig of benefits compared to erstwhile processes. For instance, it makes paper-based planetary certificates and cardinal clearing unnecessary. What’s more, the enslaved tin beryllium sold straight to investors without needing a slope to relation arsenic an intermediary.”

Although the transaction was completed utilizing classical outgo methods due to the fact that the integer euro was not yet disposable astatine the clip of the transaction, it was inactive completed successful conscionable 2 days. Siemens aspires to presumption itself arsenic a pioneer successful the ongoing improvement of integer solutions for the superior and securities markets. 

Peter Rathgeb, Corporate Treasurer astatine Siemens AG, shared:

“By moving distant from insubstantial and toward nationalist blockchains for issuing securities, we tin execute transactions importantly faster and much efficiently than erstwhile issuing bonds successful the past. Thanks to our palmy practice with our task partners, we person reached an important milestone successful the improvement of integer securities successful Germany.” 

Related: Israel kicks disconnected unrecorded tests for its tokenized integer bonds

Over the past fewer years, Siemens has been experimenting with blockchain technology. In October 2020, Cointelegraph reported that a blockchain-based vigor trading platform, Pebbles, backed by German tech elephantine Siemens held a virtual demo of its blockchain-based marketplace level for optimized energy trading. 

Additionally, successful July 2019, Siemens Considered Using Blockchain Tech for a Carsharing programme done Siemens Mobility — 1 of Siemens’ subsidiaries.