Siemens, a German multinational corporation, has recently become one of the first companies in Germany to issue a digital bond on a public blockchain.

The 60 million euro ($64 million) bond has a maturity of one year, following Germany’s Electronic Securities Act. 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.

According to Siemens, this method offers faster and more efficient transactions, without the need for an intermediary bank.

Siemens believes that by moving away from paper and towards public blockchains for issuing securities, they can execute transactions significantly faster and more efficiently.

Although the transaction was completed using traditional payment methods, Siemens still completed it in just two days. By issuing bonds on a blockchain, paper-based global certificates and central clearing are unnecessary, which provides more benefits for investors.

Siemens’s successful cooperation with its project partners has led them to reach an important milestone in the development of digital securities in Germany.

Peter Rathgeb, Siemens AG corporate treasurer, said that they aim to position themselves as a pioneer in the ongoing development of digital solutions for the capital and securities markets.

Siemens has been experimenting with blockchain technology for a few years. Last October, Pebbles, a blockchain-based energy trading platform backed by Siemens, held a virtual demo of its marketplace for optimized electricity trading.

As Siemens continues to advance digital solutions for the securities market, this recent bond issuance could be the beginning of a new era for Germany’s bond market.