Siemens has issued its second digital bond on blockchain rails to support digital ledger trials by the European Central Bank and the German Bundesbank.
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The 300 euro bond was accompanied by DekaBank as the registrar and the investors BayernLB, DekaBank, DZ BANK, Helaba and LBBW. Deutsche Bank secured settlement for Siemens in central bank money via the Bundesbank Trigger Solution.
According to Siemens, the new transaction builds in near real time on the initial €60 million issuance of digital bonds last year, which required a two-day settlement period.
The securities transaction was settled via Swiat’s private, permissioned blockchain and the Bundesbank’s Trigger solution, making it possible for the first time to settle the bond fully automatically “within minutes,” eliminating settlement risk for all parties.
Siemens Treasurer Peter Rathgeb says: “Automated processing within a few minutes shows the enormous potential of this new technology and confirms our strategy of continuously shaping the digital transformation.” We are proud to actively support further development in this area and the further digitalization of the capital markets to move forward.”