coinculture.com
Siemens is one of the first German-based firms to issue a €60 million digital bond on a public blockchain with a one-year maturity in line with the Electronic Securities Act.
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The bond was sold directly to DekaBank, DZ Bank, and Union Investment without requiring central clearing and paper-based global certificates. As noted by Siemens, the procedure facilitated quicker and more effective transactions than traditional bond-issuing processes.
Although the transaction was made via traditional payment methods since the digital euro was not yet accessible, it was completed in only two days. Siemens wants to be a leader in the constant development of digital solutions for the capital and securities markets.
Peter Rathgeb, Corporate Treasurer at Siemens AG, commented:
“By moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past. Thanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany.”
Siemens has been experimenting with blockchain technology for the past few years. In October 2020, Pebbles, a blockchain-based energy trading platform funded by Siemens, presented a simulated demonstration of their marketplace platform for optimal power trading.
In addition, Siemens considered implementing blockchain technology for a carsharing service through Siemens Mobility in July 2019.