Fortune 500 Giant Siemens Uses Polygon (MATIC) To Launch New Blockchain-Based Bond
Global technology powerhouse Siemens has issued its first digital bond on the Polygon (MATIC) blockchain following the enforcement of Germany’s Electronic Securities Act (eWpG) in June 2021.
Germany previously required securities to be represented by a physical certificate, but the eWpG introduced a legal framework that now allows the issuance of bonds using technologies such as blockchain.
In a statement, Siemens says it issued digital bonds worth $60 million with a maturity of one year. It sold the securities directly to investors sans engaging central securities depositories and the transaction was completed in two days.
Says the company’s chief financial officer Ralf P. Thomas,
“We are proud to be one of the first German companies to have successfully issued a blockchain-based bond. This makes Siemens a pioneer in the ongoing development of digital solutions for the capital and securities markets.”
Siemens says issuing bonds on a blockchain eliminates the need for paper-based global certificates and central clearing. Digital bonds can also be sold without a bank to serve as an intermediary.
Siemens corporate treasurer Peter Rathgeb says the company will actively drive the ongoing development of digital securities.
“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. Thanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany.”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Featured Image: Shutterstock/Voar CC
Credit: Source link
Comments are closed.