Siemens announces issuance of 1st digital bond on Polygon

Feb. 14, 2023 at 10:52 pm

By Dorian Batycka

Shares in MATIC increased over 7% following the news.

Siemens, Germany’s third-largest publicly traded company by market cap, has issued its first digital bond worth €60 million ($64 million) on the Polygon blockchain.

The bond was issued in accordance with Germany’s Electronic Securities Act, which came into force in June 2021 and allows the sale of blockchain-based debt to take place.

Blockchain-based bonds are expected to reduce paperwork and enable direct reach to potential purchasers without the need for intermediaries like banks.

The blockchain bond, which CoinDesk reported has a maturity of one year, “makes paper-based global certificates and central clearing unnecessary,” the company said in the statement. “What’s more, the bond can be sold directly to investors without needing a bank to function as an intermediary.”

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