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.
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.