Siemens, a leading company in German industry, has reached a major milestone by issuing its first digital bond on the Polygon blockchain (MATIC) worth €60 million. This innovative technology simplifies and secures financial transactions by eliminating traditional intermediaries. This step demonstrates Siemens’ ambition to be at the forefront of innovation.
A €60 million issue without a bank intermediary
Siemens, the German multinational company ranked third in terms of market capitalization, recently made a splash in the crypto world by issuing an on-chain bond worth $60 million. The issuance represents a first for the company, which chose to rely on Polygon’s public blockchain rather than JP Morgan’s proprietary blockchain, which it had used in the past.
Siemens had previously expressed interest in blockchain networks, but had previously favored the private blockchain. If the February 14 press release is to be believed, the multinational has finally opted for Polygon’s public blockchain for this new debt issue.
This choice was praised by Mihailo Bjelic, co-founder of Polygon, who pointed out on his Twitter that Siemens had successfully issued its securities without the help of the network’s developers.
This initiative is a step forward because it does not require the intervention of a third party to ensure the reliability of transactions. In addition, it offers many benefits to the company, such as reducing costs and saving time. With this transition to Polygon’s public blockchain, Siemens is once again pioneering the digital transformation of the financial sector.
Siemens ready to repeat experiment with digital bonds on blockchain
Siemens has hit the ground running by issuing a €60 million digital bond on the Polygon blockchain in accordance with Germany’s “electronic securities law” (eWpG). This transaction represents a first in Germany and marks an important step in the development of digital securities.
This dematerialized issue offers many advantages, such as speed and low transaction costs compared to conventional bond issues. Peter Rathgeb, corporate treasurer at Siemens AG, emphasized the need to move away from paper to public blockchains for issuing securities.
By moving away from paper and towards public blockchains for issuing securities, we can execute transactions much faster and more efficiently than when issuing bonds in the past.Statement by Peter Rathgeb
This new form of digital finance based on blockchain technology challenges the role of traditional financial intermediaries, whose expensive and slow services can now be avoided. Blockchain is revolutionizing the world of finance, and Siemens has no intention of missing out.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.