Siemens Launches Second €300M Digital Bond Using Blockchain Technology

• Siemens has issued a €300M digital bond on blockchain, reinforcing its commitment to advancing digital financial solutions.
• The bond was settled through SWIAT’s private blockchain and the Bundesbank’s Trigger Solution, enabling fully automated transactions.
• This marks Siemens’ continued exploration of blockchain, following its initial €60M digital bond issuance in 2023.

In a Sept. 4 press release, the Munich-headquartered company said Siemens has issued a €300 million digital bond using blockchain technology, marking its second such issuance under Germany’s Electronic Securities Act. This move underscores Siemens’ dedication to advancing digital solutions in the financial sector, continuing its pioneering role in leveraging blockchain for capital markets.

Innovative Blockchain Settlement

The bond, with a one-year maturity, was issued through SWIAT’s private permissioned blockchain and utilized the Bundesbank’s Trigger Solution for settlement. Siemens highlighted the transaction’s efficiency, noting that it was completed in a fully automated manner within minutes, using central bank money. This development reflects Siemens’ commitment to enhancing the digital financial ecosystem, building on the experience gained from its earlier €60 million digital bond issued in 2023.

Strategic Partnerships and Market Impact

Siemens’ continued exploration of blockchain technology aligns with its broader strategy to incorporate innovative solutions across its operations. The issuance was facilitated by DekaBank, which acted as the bond registrar, while BayernLB, DZ BANK, Helaba, and LBBW participated as investors. Deutsche Bank ensured the central bank money settlement, further solidifying Siemens’ position as a leader in digital finance.

Commitment to Digital Transformation

Ralf P. Thomas, Chief Financial Officer of Siemens AG, emphasized the company’s focus on driving digital transformation within financial markets. He noted that the automated processing of the bond issuance showcases the significant potential of blockchain technology. Siemens remains committed to advancing the digitalization of capital markets, reinforcing its innovative approach to financial solutions.

Siemens’ latest digital bond issuance exemplifies its ongoing efforts to integrate cutting-edge technologies into traditional financial processes. By leveraging blockchain for its second digital bond, Siemens continues to play a leading role in shaping the future of digital finance, contributing to the broader adoption of blockchain technology in capital markets.