Siemens issues a $64 million blockchain-based digital bond

Siemens stated that the process of issuing digital bonds is significantly more efficient and expedient than conventional bond-issue processes.

Siemens, a German industrial and technology powerhouse, has issued a digital  According to Germany’s Electronic Securities Act, it has a one-year maturity and a value of sixty million euros ($64 million).

Bond buyers including DekaBank, DZ Bank, and Union Investment reportedly purchased the bonds on February 14 without the use of a central clearing house or paper-based worldwide certificates. Siemens observed that the procedure allowed transactions to be carried out far more quickly and effectively than with conventional bond-issuing processes.

In the release, Siemens highlighted the advantages of digital bond issuance over conventional bond issuance processes. According to the corporation, “issuing the bond on a blockchain provides a number of advantages in comparison to conventional procedures. The need for a centralized centre and paper-based worldwide certifications is eliminated.

This was accomplished in only two days utilizing traditional payment methods rather than the digital euro, which was not yet accessible at the time of the transaction. Siemens’ long-term goal is to establish itself as an industry leader in the creation of cutting-edge digital solutions for the global capital and securities markets.

Peter Rathgeb sa, treasurer-general of Siemens AG: We can issue bonds much more quickly and cheaply if we switch from paper to public blockchains for the transactional processing of securities. A crucial step forward in the evolution of digital securities in Germany has been accomplished thanks to our collaborative efforts with our project partners.

Siemens has conducted blockchain technology experiments over the last many years. Cointelegraph reported in October 2020 that Pebbles, a Siemens-backed blockchain-based energy trading platform, presented a simulated demo of their marketplace for optimal power trading.

In addition, in July of 2019, Siemens contemplated using blockchain technology for a carsharing scheme via one of its companies, Siemens Mobility.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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