Digital Bond Issuance via Blockchain
Sector: Tertiary sector · Industry: Banking and financial services · Organisation: Siemens, Bundesbank, DZ Bank, LBBW, BayernLB · Maturity level: Production
Siemens successfully issued a 300 million Euro digital bond via the private SWIAT blockchain in collaboration with the German Bundesbank and several German banks. The issuance was fully automated through smart contracts and processed within hours instead of the usual several days. The project utilized the Bundesbank Trigger Solution for settlement in central bank money and demonstrated the practical application of tokenized securities under German law.
Documentation status
- Project status: Production
- Evidence: Evidence high
- Editorial review: Ufuk Avci, 15 April 2026
Description
On 3 September 2024, Siemens issued its second digital bond — €300 million, one-year maturity, on the private SWIAT blockchain, settled via the Bundesbank Trigger Solution in central bank money. SWIAT is a joint venture of LBBW, DekaBank and other financial institutions. The Bundesbank Trigger Solution forms a bridge between market blockchains and the Eurosystem’s traditional TARGET2 payment system.
Siemens AG gained initial experience in February 2023 with a €60 million digital bond on the public Polygon blockchain — settlement time then: two days. On 3 September 2024, the second, significantly larger issuance followed: €300 million, one-year maturity, on the private SWIAT blockchain. This was the largest crypto securities issuance in Germany to date under the Electronic Securities Act (eWpG). Technically, the issuance was fully automated via SWIAT and the Bundesbank Trigger Solution, which links TARGET2 with blockchains — a delivery-versus-payment settlement without traditional intermediaries such as a central securities depository. Result: complete settlement in central bank money within minutes. DekaBank acted as registrar. Investors: BayernLB, DekaBank, DZ BANK, Helaba and LBBW. Deutsche Bank handled the cash-side settlement. Peter Rathgeb, Corporate Treasurer Siemens: "The automated settlement within minutes demonstrates the enormous potential of this new technology." The issuance supported the ECB’s New Technologies Wholesale Trials.
Perspectives
B2B — organisations perspective
Investors such as BayernLB, DekaBank, DZ BANK, Helaba and LBBW subscribed to the bond directly — without an intermediary. After settlement, they were able to immediately view their register entry on the SWIAT platform. LBBW, which has been working with digital assets since 2017, describes the issuance as part of its digital asset strategy.
B2C — consumers perspective
Private investors could in future benefit from lower minimum investment amounts and simplified trading processes for tokenised bonds. The increased transparency provided by blockchain technology enables better traceability of investments.
Employees perspective
Siemens’ treasury teams were able for the first time to carry out a fully automated bond issuance without manual processing steps — from issuance to settlement in central bank money within minutes, instead of the previous T+2 standard.
Benefits
General
- Issuance time is reduced from several days to a few hours, significantly improving capital market liquidity.
- Smart contracts almost completely eliminate settlement risk and automate recurring payments.
- Transparency and traceability of all transactions are significantly increased by blockchain technology.
B2B — organisations
- Companies can respond more flexibly and quickly to capital market opportunities and reduce their financing costs through lower intermediary fees.
B2C — consumers
- Private investors potentially gain better access to corporate bonds through lower entry barriers and simplified trading processes.
Employees
- Finance teams can focus on strategic capital market planning and analysis instead of repetitive settlement tasks.
Challenges
General
- Integration of various systems and partners requires complex technical coordination between issuers, banks and regulators.
- Legal frameworks for tokenised securities must be continuously adapted to technological developments.
B2B — organisations
- Companies need to invest in new blockchain competencies and adapt existing treasury systems to digital asset settlement.
Employees
- Employees require training in blockchain technology and digital asset management processes.
Technology foundation
The project is based on the private SWIAT blockchain, a platform developed specifically for financial services and operated by a consortium of German banks. The technology enables the tokenisation of bonds as ISIN-linked digital assets and uses smart contracts for fully automated settlement of issuances and interest payments.
Implementation examples
Siemens €300 million blockchain bond
Siemens wanted to increase the efficiency of its capital raising while simultaneously driving the future of digital financing instruments as an innovation leader. The company sought ways to reduce issuance costs and minimise settlement times.
Siemens issued a €300 million bond fully automated via the SWIAT blockchain with a one-year maturity.
In September 2024, Siemens, together with the Bundesbank and a consortium of German banks, conducted the issuance of a €300 million bond via the private SWIAT blockchain. DekaBank acted as registrar, while BayernLB, DZ Bank, Helaba and LBBW participated as investors. The entire settlement took place within a few hours instead of the usual several days, with smart contracts enabling automated issuance and settlement.
The traditional bond issuance required complex manual processes involving multiple intermediaries and settlement times spanning several days. Settlement risk and high transaction costs due to trustees posed additional challenges.
Tags
Smart Contracts, Tokenisation, Securities, Automation, Central bank money