Siemens Uses Polygon (MATIC) To Launch Blockchain-Based Bond

It’s just been revealed that the Fortune 500 Giant Siemens has started using Polygon Matic to launch a new bond. Check out the latest reports below.

It’s been just revealed that technology powerhouse Siemens has issued its first digital bond on the Polygon (MATIC) blockchain following the enforcement of Germany’s Electronic Securities Act (eWpG) in June 2021.

It’s also been revealed the fact that Germany previously required securities to be represented by a physical certificate, but the eWpG introduced a legal framework that now allows the issuance of bonds using technologies such as blockchain.

In a statement, Siemens revealed the fact that it issued digital bonds worth $60 million with a maturity of one year. It sold the securities directly to investors sans engaging central securities depositories and the transaction was completed in two days.

The company’s chief financial officer Ralf P. Thomas stated the following:

“We are proud to be one of the first German companies to have successfully issued a blockchain-based bond. This makes Siemens a pioneer in the ongoing development of digital solutions for the capital and securities markets.”

Siemens also said that issuing bonds on a blockchain eliminates the need for paper-based global certificates and central clearing. It’s also worth noting the fact that digital bonds can also be sold without a bank to serve as an intermediary.

Siemens corporate treasurer Peter Rathgeb said the fact that the company will actively drive the ongoing development of digital securities.

“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 the past. Thanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany.”

Stay tuned for more news and keep your eyes on the market as well.