The bond has been issued on a private version of the ethereum blockchain and the success of the trial encouraged the German company to test other use cases.
German manufacturing company Daimler reportedly issued its first blockchain bond last month.
As CoinDesk (coindesk.com) wrote in a report, the 100 million bond is a result of Daimler`s plan to explore the technology.
The bond has been issued on a private version of the ethereum blockchain and the success of the trial encouraged the German company to test other use cases, as the article added.
Different departments within the company are not exploring the use cases, as Daimler AG’s senior manager of treasury process management, Eva-Marie Scholz, commented, as quoted by CoinDesk:
“It was definitely not disappointing. [Reflecting on] the process, we are able to review the potential of blockchain to make real business model changes for overall capital markets and banking transactions.”
The Schuldschein bond is a way for corporations to borrow money from investors that may otherwise be difficult to approach.
“Part of the appeal of Schuldschein is that they are not a standard debt instrument and have elements of both loans and bonds in their DNA.”, reads on The Treasurer (treasurers.org).
“Schulschein tend to be less expensive than bonds and do not need to be listed or registered at a stock exchange (meaning there is no need for a lengthy prospectus), but they are marked like bonds.”, as the article added.
“Daimler issues around 50 to 70 bonds annually.”, said Orhan Oezcelik from Daimler’s capital markets division.
“While we don’t expect blockchain to impact the total volume of issuances, the technology could allow a greater number of transactions which would then be smaller in size.”, as he elaborated.
The company is now investigating use cases in departments like sales, engineering, securities trade, cross-border shipment of goods and payment of transactions.
It is to be seen which blockchain solutions will be employed in this areas.