Siemens issued a €60 million blockchain bond on the Polygon blockchain with a one-year maturity.
German tech corporation Siemens issued digital bonds on the Polygon blockchain. Assets worth €60 million were sold directly to DekaBank, DZ Bank, and Union Investment. Technically, the issuance was performed by Hauck Aufhäuser Lampe Privatbank, which acted as the bond registrar and provided the solution for storing digital assets.
Siemens was one of the first companies in Germany to benefit from blockchain bond issuance under the 2021 Electronic Securities Act.
The company noted that the process of issuing digital bonds was much faster and more efficient than traditional methods of issuing debt securities. For example, centralized clearing and paper certificates weren’t required to release and sell the assets. Plus, the bonds can be sold to investors directly without a bank intermediary.
“By moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past,” said Peter Rathgeb, Corporate Treasurer at Siemens.
The process of issuing and selling digital bonds took two days. The purchase was made using classic payment methods, but in the future, it’ll be possible to pay for similar transactions using digital euros, which will speed up the process even more.
