Siemens Chooses This Altcoin for $330 Million Bonds!

Siemens has chosen the infrastructure of this altcoin project for its $330 million bond issuance.

German industrial giant Siemens AG issued a digital bond worth 300 million euros (approximately $330 million) on Wednesday. The transaction was carried out as part of a project by the European Central Bank (ECB) to test central bank money transactions with blockchain technologies.

Siemens used fintech firm SWIAT’s permissioned private blockchain and the Bundesbank’s trigger solution in the digital bond issuance process. The issuance was based on Siemens’ €60 million bond issuance transaction conducted last year via the Polygon network. Last year’s transaction required a two-day processing time.

“The fact that the automated transaction process is completed in a few minutes demonstrates the enormous potential of this new technology and confirms our strategy of playing a leading role in continuously shaping the digital transformation,” said Peter Rathgeb, Siemens’ corporate finance director.

It was noted that major German financial institutions, including Deutsche Bank, BayernLB, DekaBank, DZ BANK, Helaba and Landesbank Baden–Württemberg (LBBW), made investments in the bond issuance process. Deutsche Bank also helped facilitate the transaction process.

The transaction was considered the latest example of traditional institutions promoting the tokenization (digitization of real-world assets) of traditional financial instruments on the blockchain. Such processes promise operational benefits such as increasing transaction speed and transparency, reducing costs and increasing efficiency.

Last month, CoinDesk reported that Germany’s largest development bank KfW was preparing a digital bond issuance with Boerse Stuttgart Digital (BSD).