The German company Siemens issues its first tokenized bond in the amount of 60 million euros on the public blockchainpresumably Polygon.
Since June 2021 and the entry into force of the Electronic Securities Act in Germany, companies have been able to issue bonds no longer in paper format, but digital.
Siemens takes up the legislation and announces the issue of its own digital bond on the public blockchain. The information is not in the press release, but according to the crypto journalist Colin Wuit would be the Polygon network.
Time and efficiency gains for the transmitter
This digital bond in the amount of 60 million euros with a maturity of one year (the interest rate is not mentioned) has several advantages for its issuer. The paper-based global certificates and central clearing are no longer necessary.
“In addition, the bond can be sold directly to investors without the need for a bank to act as an intermediary,” the German firm further mentions. This means direct savings, but also time and efficiency gains.
The security tokens were sold directly by Siemens to DekaBank, DZ Bank and Union Investment. As for the payment, it was made according to “traditional methods”, because of the lack of digital euro for the settlement.
We are proud to be one of the first German companies to successfully issue a blockchain-based bond. This makes Siemens a pioneer in the ongoing development of digital solutions for the capital and securities markets,” enthused Ralf P. Thomas, CFO of Siemens AG.
A growth lever for digital securities
For company treasurer Peter Rathgeb, this premiere is “a significant step in the development of digital titles in Germany “. And Siemens specifies its intention to participate “actively” in their use.
Recall, moreover, that Siemens is developing the use of the blockchain for the management of its internal payments. In late 2021, the German signed with the Onyx division of JPMorgan.
The goal was to automate payments, an imperative given the business transformation of its activity. Siemens witnessed the increase in payments resulting from the adoption of pay-per-use models.
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