The German engineering and technology giant, Siemens has become one of the first companies in German for issuing digital bonds on a public blockchain. The digital tokens are worth $ 64 Million with a maturity of one year and are issued in accordance with Germany’s Electronic Securities Act.
As per the recent announcement, the bond was sold directly to investors such as Union Investment, Deka Bank, and DZ Bank without requiring central clearing and paper-based global certificates. Thus, the company also believes that the process of issuing digital bonds is much faster and more efficient than traditional bond–issuing methods.
Through its announcement, Siemens also emphasized the benefits of digital bonds stating that issuing bonds on a blockchain offers several benefits when compared to previous processes. With this initiative, the company aspires to position itself as a pioneer in the development of digital solutions for the capital and securities market.
The company also shared that by moving away from paper and towards the public blockchain the transactions become faster and more efficient. Alongside, the company also gives credit to its project partner for helping reach milestones in the development of digital securities in Germany.
For the past few years, Siemens has been experimenting and innovating with blockchain technology. In July 2019, the company also considered using blockchain technology for the carsharing program through one of its subsidiaries named Siemens Mobility. As per the 2020 report of Cointelegraph, Pebbles which is a blockchain–based energy trading platform backed by Siemens also held a virtual demo for optimizing electronic trading of its marketplace.