Siemens, a leading German manufacturer, has unveiled its first-ever digital bond. This €60 million one-year bond is supported by a public blockchain and has a one-year maturity. According to Siemens, it is one of the first businesses in Germany to issue a digital bond.
The report claims that bond issuance on a blockchain, as opposed to more traditional techniques, offers several advantages. For instance, it eliminates the need for central clearing and paper-based global certificates. Furthermore, the bond can be offered directly to investors without the assistance of a bank.
Chief Financial Officer of Siemens AG, Ralf P. Thomas, explained that Siemens had successfully supported its customers’ digital transformations by using cutting-edge products and solutions. Therefore, it makes sense for them to experiment with and apply the most recent digital financial solutions.
Thomas expressed his company’s pride in being one of the first in Germany to successfully issue a blockchain-based bond. Siemens is now a pioneer in the continued development of digital solutions for the capital and securities markets.
Siemens took advantage of the Electronic Securities Act, which allowed the issuance of blockchain-based digital bonds in Germany. The company marketed the securities directly to investors without involving central securities depositories, which accelerated the transaction process.
Siemens AG’s Corporate Treasurer, Peter Rathgeb, highlighted that by shifting from paper to public blockchains, they could carry out transactions more efficiently and quickly than when using traditional bond issuance methods.
Rathgeb stated that the development of digital securities in Germany had reached a significant turning point due to their productive collaboration with their project partners. The lack of the digital euro at the time meant that the payments for the bond issuance had to be made through traditional methods, and the purchase was successful within two days.
If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
