Digital Assets in Capital Markets

Advanced course on digital assets - assets created using a blockchain/DLT network - designed for finance professionals.

IBF-STS Recognised
8 CPD Hours

20 July 2022 (Wednesday) | 9am-5pm

Daimler, parent company of Mercedes-Benz, transacted €100 million in a one-year corporate bond completely via an ethereum based blockchain system just last month, June 2017.

This issuance, also known in German as Schuldschein, notably carried out the “entire transaction … from origination, distribution, allocation and execution to the next stage of confirmation of repayment and interest payments” over blockchain. This pilot project aimed to test the use of blockchain technology in increasing efficiency of their transactions and financial processes, adds Bodo Uebber, AG board member.

Blockchain is essentially a data processing platform, in the form of a distributed ledger, with a secure trust infrastructure that can automate and settle data/transactions over cryptocurrencies like Bitcoin and Ethereum. Increasingly, blockchain technology has garnered interest across banking institutions across the world, as a tool for lending and trade financing. Most of these are either in pilot or trial stage.

This is a big step from the traditional bond settlement and clearing processes that are currently adopted. Locally, in Singapore, the Monetary Authority of Singapore (MAS) is also exploring the use cases of blockchain technology in bond trading settlement and cross border payments. The landscape of the bond market would see changes with the successful applications of this technology. Daimler’s €100 million ethereum bond is just the start.

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