• Siemens has become the first company in Germany to issue a digital bond worth $64 million.
• The bond was issued on a public blockchain, claiming that it is much faster than traditional channels.
• The transaction was conducted using traditional payment methods and the share of Polygon’s native crypto MATIC saw a 7.21% increase in value after the announcement of the digital bond.
Siemens Issues $64 Million Digital Bond
Siemens AG, one of Germany’s leading engineering companies, has issued a digital bond worth 60 million euros or $64 million on February 14th. This marks the company as one of the first in Germany to do so and follows the country’s Electronic Securities Act.
Transactions Conducted Using Traditional Payment Methods
The investment transactions for this digital bond were conducted using traditional payment methods since the digital euro payment system was not available at that time. However, despite this, they were able to complete the process within two days through Polygon’s blockchain network.
Benefits Of Issuing Bonds On Blockchain
Issuing bonds through blockchain offers numerous advantages compared to previous processes such as eliminating paper-based global certificates and central clearing while also allowing investors to directly purchase these bonds without needing any intermediary banks.
Increase In Value Of MATIC Token
As a result of this digital bond being issued, shares of Polygon’s native crypto MATIC saw an increase in value by 7.21%. At present, it is valued at around $1.27 per token.
Siemens‘ Commitment To Blockchain & Crypto Ambitions
Siemens AG Corporate Treasurer Peter Rathgeb stated that their move away from paper-based securities and toward public blockchains for issuing them increases speed and efficiency when compared to traditional bond-issuing methods significantly. Furthermore, by extending its support to blockchains and cryptocurrencies, Siemens is continuing its commitment towards developing advanced solutions for capital and securities markets globally.