Siemens, a leading German multinational in the fields of engineering and technology, is one of the first companies in Germany to issue a digital voucher in a public blockchain. Due to this achievement, Siemens can now be counted among an exclusive club of companies in Germany. It has a value of sixty million euros (or sixty-four million dollars), a maturity date of one year, and an expiration date, all in accordance with the German Electronic Securities Act.
According to the announcement that was published on February 14, the bond was issued directly to investors such as DekaBank, DZ Bank and Union Investment without the need for international paper certificates or central clearing. Compared to traditional bond issuance methods, Siemens commented that the approach made it possible for transactions to take place substantially faster and more effectively.
In the announcement, Siemens strongly emphasized the benefits of employing digital bonds compared to traditional bond issuance methods. The company claims that “issuing the bond on a blockchain offers many benefits” compared to previous procedures. Two examples of items that will become unnecessary as a result of this change are international paper certifications and central authorization. In addition to this, the bond can be issued to investors on an individual basis without the need for an intermediary financial institution, such as a bank, to be present during the transaction.
Despite the fact that the transaction was made using conventional means of payment instead of the digital euro at the time of the transaction as the digital euro was not yet available, it was completed in just two days. Siemens has set itself the lofty goal of being the industry leader in the continuous process of creating digital solutions for the capital and securities markets. This is a very ambitious goal.