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German engineering and technology giant Siemens has become one of the first companies in Germany to issue a digital bond on a public blockchain, reports Cointelegraph. It’s worth €60 million ($64 million) and has a maturity of one year, in accordance with Germany’s Electronic Securities Act.

According to the 14 February announcement, the bond was sold directly to investors such as DekaBank, DZ Bank, and Union Investment, without the need for central clearing and paper-based global certificates. Siemens noted that the process enabled transactions to be executed much faster and more efficiently than traditional bond-issuing methods.

Siemens emphasised the benefits of using digital bonds over traditional bond-issuing methods in the announcement. According to the company, “issuing the bond on a blockchain offers a number of benefits compared to previous processes. For instance, it makes paper-based global certificates and central clearing unnecessary. What’s more, the bond can be sold directly to investors without needing a bank to function as an intermediary.”

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