• Siemens has issued a digital bond on a public blockchain worth 60 million euros ($64 million).
• The process of issuing the digital bond was much faster and more efficient than traditional methods.
• The benefits of using this digital technology include eliminating paper-based global certificates and central clearing, as well as reducing the need for intermediaries.
Siemens Issues Digital Bond
Siemens, a German engineering and technology giant, has become one of the first companies in Germany to issue a digital bond on a public blockchain. This one-year bond is worth 60 million euros ($64 million) and was sold directly to investors such as DekaBank, DZ Bank, and Union Investment.
Benefits of Digital Bond
The process enabled transactions to be completed much faster than traditional methods. Additionally, it eliminates paper-based global certificates and central clearing, as well as reducing the need for intermediaries. As such, it provides numerous advantages over other existing processes used in the capital and securities markets.
Transaction Completed in Two Days
Although the transaction was completed using classic payment methods due to the unavailability of digital euro at that time, it was still wrapped up within two days. This highlights how quickly business can be done with digital bonds compared to traditional methods.
Positioning Itself as Pioneer
Siemens is aiming to become a pioneer in the development of digital solutions for capital and securities markets through its involvement with this project. As such, this is an important milestone for both Siemens and Germany alike in terms of adaptation towards new technologies in finance.
In conclusion, Siemens’ successful issuance of its digital bond reflects how businesses can benefit from utilizing new technologies such as blockchain when dealing with financial matters. By doing so, they can reduce costs while increasing efficiency at the same time – something that will no doubt prove attractive to many companies around the world in the future.