Siemens Ventures Into Blockchain Space With $64M Digital Bond Offering On Public Blockchain

The German engineering and technology powerhouse Siemens is one of the first corporations in Germany to issue a digital bond on a public blockchain. This accomplishment places Siemens among an exclusive group of businesses in Germany. In line with the Electronic Securities Act of Germany, it has a maturity date of one year, a value of sixty million euros (or sixty-four million dollars), and a maturity date.

According to the statement that was made on February 14, the bond was offered directly to investors, including DekaBank, DZ Bank, and Union Investment, without the need for central clearing or paper-based worldwide certificates. Siemens remarked that the procedure made it possible for transactions to be carried out significantly more quickly and successfully compared to the conventional techniques of issuing bonds.

In the release, Siemens placed a strong emphasis on the advantages of using digital bonds as opposed to conventional bond-issuing techniques. When compared to the methods that came before it, the business claims that “issuing the bond on a blockchain provides a lot of advantages.” Paper-based worldwide certifications and central clearance are two examples of things that become superfluous as a result. In addition to this, the bond does not need the services of a bank to act as a middleman in the transaction; rather, it may be offered directly to investors.

Even though the transaction was performed using traditional payment methods rather than the digital euro at the time of the transaction since the latter was not yet accessible, it was nonetheless finished in only two days. Siemens has the ambitious goal of establishing itself as an industry leader in the continuous process of developing digital solutions for the capital and securities markets.

Siemens has been doing research and development on blockchain technology over the course of the last several years. Pebbles, a blockchain-based energy trading platform that is funded by Siemens, gave a virtual demo of their marketplace for optimal power trading in October 2020. Pebbles was founded in 2019 and is backed by Siemens. In addition, in the month of July 2019, Siemens Mobility, one of the company’s subsidiaries, investigated the possibility of using blockchain technology in a carsharing programme.

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