Siemens has launched its second digital bond on blockchain technology to support the European Central Bank and Deutsche Bundesbank’s digital ledger trials.
The €300 million bond issue was facilitated by DekaBank as the registrar, with participation from investors including BayernLB, DekaBank, DZ BANK, Helaba, and LBBW. Deutsche Bank handled the settlement for Siemens using central bank money through the Bundesbank Trigger Solution.
This new bond transaction represents a significant advancement from last year’s initial €60 million digital bond issuance, which required a two-day settlement period. The latest securities transaction was settled on the private permissioned blockchain of Sia and the Bundesbank’s Trigger Solution, allowing for settlement in a fully automated manner “within minutes” and effectively eliminating settlement risk for all involved parties.
Siemens treasurer Peter Rathgeb stated, “Automated processing within a few minutes showcases the enormous potential of this new technology and reinforces our strategy of taking a leading role in shaping digital transformation. We are proud to contribute actively to further developments in this area and the ongoing digitalization of capital markets.”