• Siemens has become the first company in Germany to issue a digital bond worth $64 million.
• The bond was sold directly to investors, without the involvement of central clearing or paper-based global certificates on the public blockchain.
• As a result of this news, the shares of Polygon’s native crypto, MATIC, saw a 7.21% increase in value after the announcement of the digital bond on February 14.
Siemens Issues Digital Bond Worth $64 Million
Siemens AG has become one of the first companies in Germany to issue a digital bond worth 60 million euros or $64 million on a public blockchain. The tech giant announced the news on February 14, claiming that it is much faster than traditional channels of issuing bonds.
Benefits Of Issuing Bonds On Blockchain
Issuing bonds on blockchain offers a number of benefits compared to previous processes. For instance, it makes paper-based global certificates and central clearing unnecessary. What’s more, the bond can be sold directly to investors without needing a bank to function as an intermediary.
Investors Involved In Transaction
The companies that invested in this digital bond include DekaBank, DZ Bank and Union Investment. It is to be noted that at the time of transaction;the digital euro payment system was not available therefore investment transactions were conducted using traditional payment methods which were completed within two days via Polygon blockchain platform .
Shares Increase After Announcement
As a result of this announcement,the shares of Polygon’s native crypto ,MATIC saw 7.21 % increase in value after announcement .At present ,MATIC token is valued at $1 .27 .
Siemens Blockchain Ambitions
In order to establish itself as pioneer in developing digital solutions for capital and securities markets , Siemens AG Corporate Treasurer Peter Rathgeb said,“By moving away from paper and toward public blockchains for issuing securities , we can execute transactions significantly faster and more efficiently than when issuing bonds in past .“The company have been making rapid strides in blockchain & crypto space by extending its support to blockchain projects such as Libra & EOS -IO .