Siemens AG Utilizes Blockchain Technology to Tokenize Commercial Paper
German industrial giant Siemens AG has made headlines by using the innovative Onyx payment system powered by global bank JPMorgan’s blockchain and the private SWIAT blockchain to issue and redeem a tokenized version of its commercial paper. This groundbreaking move showcases the company’s commitment to embracing cutting-edge technology in the financial sector.
Siemens successfully issued €100,000 worth of crypto securities under the Germany Electronic Securities Act (eWpG) on September 13, followed by a swift redemption just three days later. The payments were facilitated through the Onyx network utilizing JPM Coin, while asset transfers were executed using the SWIAT network’s delivery versus payment (DvP) mechanism.
The entire process, from trade confirmation on SWIAT to final settlement confirmation, was completed in a remarkable 93 seconds. This efficient workflow highlights the seamless integration of blockchain technology in financial transactions. DekaBank also played a key role in the process, serving as a regulated registrar of crypto securities on the SWIAT network.
This collaboration between Onyx and SWIAT marks the beginning of a promising partnership aimed at developing blockchain-based asset issuance products for commercial banks. The ultimate goal is to streamline value chains, enhance transaction flexibility, and accelerate the speed of blockchain-based financial transactions, making them more scalable for commercial banks.
The tokenization of traditional financial instruments, known as real-world assets (RWAs), has emerged as a rapidly growing trend in the blockchain space, with major banks increasingly embracing this technology. JPMorgan, a frontrunner in this domain, has paved the way with Onyx and its innovative blockchain-based settlement technology, JPM Coin.
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