German tech giant Siemens issues bonds in Polygon

1 year ago 77

Issuing Digital Bonds on Blockchain

Germany-based tech giant Siemens has reportedly issued its first digital bond on a public blockchain today.

The approximately 8.6 billion yen (€60 million) bond has a one-year maturity and is powered by the Polygon (MATIC) blockchain. It also complies with the German electronic securities law. Digital bonds were sold directly to investors such as DekaBank, DZ Bank and Union Investment.

In Germany, since the Electronic Securities Law went into effect in June 2021, it has become possible to issue digital bonds using blockchain.

Siemens sells bonds directly to investors without going through intermediaries such as banks that handle securities. It said the transaction was completed within two days. Siemens Treasurer Peter Rathgeb commented:

Moving from paper to public blockchains and issuing securities has made it possible to execute transactions significantly faster and more efficiently than before.

An important milestone has been reached in the development of digital securities in Germany. We will continue to actively promote its development.

Siemens Chief Financial Officer Ralf P. Thomas also emphasized the company’s commitment to supporting digital transformation.

Siemens has achieved great success by supporting the digitization of customer companies with innovative products and technologies. So it makes sense to test and leverage the latest digital solutions in the financial sector as well.

With its successful blockchain-based bond issuance, Siemens has also become a pioneer in developing digital solutions for capital and securities markets.

Blockchain partnership with JP Morgan

Siemens has also partnered with US financial giant JP Morgan in the blockchain field. In December 2021, it was reported that JP Morgan was developing a payment platform that uses blockchain technology to promote automated transfers between Siemens-related accounts.

connection: JP Morgan and Siemens tie up to build a new payment system based on blockchain

Companies issuing digital bonds one after another

In Germany, more than 20 companies are issuing digital bonds on the blockchain since the Electronic Securities Act came into force. Germany’s leading securities service providers DekaBank and Deutsche Bank are among them.

Around the world, various organizations have issued digital bonds. Southeast Asia’s largest DBS Bank will issue digital bonds worth ¥1.2 billion in its first security token offering in 2021.

Some of the other examples include security token issuances by major French bank Societe Generale Group and Italian luxury car maker Mazzanti Automobili.

connection: Southeast Asia’s largest DBS issues digital bonds equivalent to 1.2 billion yen in STO

What is a security token

It is “to tokenize securities and exchange them on the blockchain”. Securities must prove the assets they hold, and based on the fact that their value is secured by legal currency, etc., security tokens can be rephrased as “stocks, bonds, etc. managed on the blockchain”. be done.

Cryptocurrency Glossary