Siemens issues €300m digital bond via blockchain for instant settlement

Siemens has issued a 300 million euro digital bond, using blockchain technology for the second time to facilitate securities transactions under Germany’s Electronic Securities Act.

German multinational technology giant Siemens has launched its second blockchain-based digital bond worth €300 million under Germany’s Electronic Securities Act, aiming to expand its expertise in the distributed ledger market.

The issuance follows its €60 million digital bond issue in 2023, the Munich-based company said in a press release on September 4, underscoring its commitment to advancing digital financial solutions.

The one-year maturity bond was settled via SWIAT’s special permissioned blockchain and used the Bundesbank’s Trigger Solution. The company says the transaction was “fully automated, within minutes and with central bank money.”

“By issuing another digital bond, we are once again demonstrating our spirit of innovation and underscoring our aim to continuously advance digital solutions for the financial markets.”

Ralf P. Thomas, chief financial officer of Siemens

DekaBank acted as bond registrar, while BayernLB, DZ BANK, Helaba and LBBW participated as investors, while Deutsche Bank facilitated the placement of central bank money.

Siemens’ blockchain efforts are part of a broader strategy that includes new technologies. The company has partnered with Sony to explore the metaverse in early 2024, with a focus on industrial applications. The collaboration aims to launch a new mixed reality headset designed for professional designers and engineers that increases productivity with artificial intelligence, according to Siemens CEO Roland Busch.