• Polygon has partnered with Siemens and other companies to issue a €60 million ($64 million) blockchain-based bond.
• The bond was issued based on Germany’s Electronic Securities Act, introduced in June 2021.
• Companies such as DekaBank, DZ Bank, and Union have purchased the bond.

Polygon Partners With Siemens To Issue Blockchain-Based Bond

Polygon has been able to seal several partnerships with companies from different fields. The latest to work with Polygon is Siemens, Germany’s engineering and manufacturing giant which is the third-largest publicly traded company by market cap. According to reports, the company has issued its first digital bond on the Polygon blockchain worth €60 million ($64 million).

Issuance of Bond Based On German Electronic Securities Act

The bond was issued based on Germany’s Electronic Securities Act, introduced in June 2021 to ensure that blockchain-based debts occur. The popularity of blockchain-based bonds keeps expanding as companies seek to reduce paperwork in addition to ensuring that potential purchasers are contacted directly without the need for intermediaries like the bank. Peter Rathgeb, corporate treasurer at Siemens commented that the company has high hopes of observing efficient transactions at a reasonable speed. However, no disclosure was made on the interest rate for the bond.

Bond Purchased By Several Companies

The likes of DekaBank, DZ Bank, and Union have purchased the bond. It is important to note that the issuance was organized by Hauck Aufhäuser Lampe Privatbank. This company operates as the bond registrar and also provides digital asset custody for the keys. Hauck Aufhäuser Lampe Privatbank’s digital asset unit is led by Simon Seiter, known for heading Deutsche Börse’s Digital Assets units for two years.

Siemens Exploring Potential Of Blockchain Technology

It can be recalled that in 2021, Siemens established a new working group focused exclusively on exploring blockchain technology within its various divisions and subsidiaries across Europe and Asia Pacific regions. This includes payments and debt issuance industry making paper-based global certificates and central clearing unnecessary due to its one year maturity period allowing it to be sold directly to investors without needing a bank intermediary function..

Conclusion

Overall this partnership between Polygon & Siemens marks an important milestone in mainstream adoption of blockchain technology as more companies turn towards modernizing their processes while reducing paperwork efficiently & quickly leveraging potential benefits offered by technology like blockchain & smart contracts