Siemens Issues Polygon Blockchain Euro-Denominated Bond

Siemens Puts Out a Bond in Euros Based on Blockchain on the Polygon Blockchain

The bond for $64 million is due in one year.

Siemens (SIE), Germany’s third-largest publicly traded company by market capitalization, released its first digital bond to cut down on paperwork and reach out directly to potential buyers.

A press release says that the $64 million bond, which was issued on the Polygon blockchain, will be paid off in one year. The company refused to say what the rate of interest was.

Moving Markets

In a statement, the company said that a blockchain bond gets rid of the need for paper-based global certificates and central clearing. “In addition, the bond can be sold directly to investors without going through a bank as a middleman.”

The sale is not the first time that Siemens has tried out blockchain technology. In December 2021, JPMorgan Chase worked with the world’s largest engineering and manufacturing company to create a payment system based on blockchain. The system is used to move money automatically between the accounts of the Munich-based company.

In June 2021, the Electronic Securities Act went into effect. This law lets blockchain-based debts be sold. On this page, you can see other German companies that have used blockchain technology to make digital bonds.

Peter Rathgeb, Siemens’ corporate treasurer, said, “By moving away from paper and toward public blockchains for issuing securities, we can do transactions much faster and more efficiently than when we used to issue bonds on paper.”

Facebook
Twitter
LinkedIn
Reddit
Telegram
Email

About Post Author