Siemens, a frontrunner in technological innovations, has issued a new digital bond, reinforcing its position as a pioneer in the FinTech sector.
This latest issuance supports the European Central Bank (ECB)’s exploration of distributed ledger technology (DLT) for securities settlement using central bank money. With a volume of €300m and a one-year maturity, this digital bond marks another step forward in Siemens’ engagement with blockchain technology.
Ralf P. Thomas, Chief Financial Officer of Siemens AG, said, “Since the successful issuance of our first digital bond on a blockchain, we have been rigorously focusing on the further development of this forward-looking technology.
“By issuing another digital bond, we are demonstrating once again our spirit of innovation and underscoring our aim to continuously drive digital solutions for the financial markets. Siemens remains a pioneer in the application of the latest technologies on the capital and securities markets.”
Peter Rathgeb, Corporate Treasurer of Siemens AG, added, “Automated processing within a few minutes shows the enormous potential of this new technology and confirms our strategy of playing a leading role in continuously shaping the digital transformation. We are proud to be an active driver of further developments in this area and of the further digitalization of the capital markets. Thanks to our successful collaboration with our project partners, we have reached another key milestone.”
The bond’s transaction was executed on the private permissioned blockchain of SWIAT, with the Bundesbank’s Trigger Solution facilitating a fully automated settlement within minutes in central bank money. This innovation has significantly reduced settlement risks, building on the experiences from Siemens’ initial €60m digital bond, which required a two-day settlement period.
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