Following the announcement, MATIC’s stock price climbed by almost 7%.
Siemens, the third-largest publicly listed corporation in Germany by market capitalization, has issued its first €60 million ($64 million) digital bond on the Polygon blockchain.
The bond was issued in compliance with the Electronic Securities Act of Germany, which went into effect in June 2021 and permits the selling of blockchain-based debt.
Bonds based on blockchain technology are anticipated to cut paperwork and eliminate the need for middlemen such as banks.
The blockchain bond, which CoinDesk reports has a one-year maturity, eliminates the need for paper-based worldwide certifications and central clearing, according to the company’s statement. In addition, the bond may be offered directly to investors without the requirement for an intermediate bank.
The business did not specify an interest rate for the bond but said that it thinks this would speed up and improve the efficiency of such transactions in the future.
Siemens’ corporate treasurer Peter Rathgeb recently said that the company plans to move away from paper and towards public blockchains for issuing securities since it will allow the company to perform transactions more quickly and more effectively than when issuing bonds in the past.
Since 2021, Siemens, a German engineering and manufacturing behemoth, has aggressively investigated the possibilities of blockchain technology in a variety of fields, including payments and debt issuance.
In 2021, Siemens collaborated with JPMorgan Chase to establish a blockchain-based payment system that facilitates the automated movement of funds across Siemens’ accounts. This system attempts to simplify and streamline payments, removing the need for middlemen and facilitating transactions that are quicker and more efficient.
Upon hearing that Siemens has issued its first digital bond on the Polygon network, the MATIC token price surged by 7.21 percent during trading on February 14. The price of MATIC is now $1.25.
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