Monday, April 15, 2024
HomeNewsSiemens Issues €60 Million Digital Bond on Blockchain

Siemens Issues €60 Million Digital Bond on Blockchain

The €60 million ($64 million) bond has a one-year maturity and is built on the public Polygon blockchain.

Siemens, the largest industrial producer in Europe, declared that it is one of the first businesses to issue a digital bond in Germany in compliance with the nation’s Electronic Securities Act, which went into effect in June 2021.

According to crypto media reports, the €60 million ($64 million) bond has a one-year maturity and is built on the public Polygon blockchain. When announcing the agreement on Tuesday, Siemens highlighted a few benefits of using a blockchain platform as opposed to more conventional techniques.

For instance, it eliminates the need for central clearance and paper-based global certificates. Furthermore, the bond can be offered directly to investors without the assistance of a bank.

Read More: Indian Army To Receive AI-Based Threat Assessment Software 

Peter Rathgeb, corporate treasurer at Siemens AG, said, we can conduct transactions substantially faster and more efficiently than when issuing bonds in the past by moving away from paper and towards public blockchains for issuing securities.

According to Siemens, companies can issue blockchain-based digital bonds under Germany’s Electronic Securities Act. Additionally, the Act  claimed that without using recognised central securities depositories, it had marketed the securities directly to investors.

Subscribe to our newsletter

Subscribe and never miss out on such trending AI-related articles.

We will never sell your data

Join our WhatsApp Channel and Discord Server to be a part of an engaging community.

Sahil Pawar
Sahil Pawar
I am a graduate with a bachelor's degree in statistics, mathematics, and physics. I have been working as a content writer for almost 3 years and have written for a plethora of domains. Besides, I have a vested interest in fashion and music.


Please enter your comment!
Please enter your name here

Most Popular