Daimler Takes Blockchain for a Spin with a €100 Million Bond

The use of blockchain technology for lending and trade financing is one of the most important applications currently being explored by banking institutions across the world. Many of these projects are either in trial or pilot stage. Daimler AG, the leading German automobile manufacturer, has decided to make use of the cryptocurrency ledger technology for similar purposes recently.

Daimler, in partnership with Landesbank Baden-Württemberg (LBBW) recently announced the creation of a blockchain based €100 million bond. The bond, Schuldschein is financed by LBBW along with other financial institutions including Esslingen-Nürtingen and Ludwigsburg and Ostalb.

The whole process of issuing the bond, starting with its origination (drafting in conventional terms), distribution, allocation, and execution were all handled over the blockchain. The implementation of Schuldschein was facilitated by Daimler’s and LBBW’s subsidiaries, TSS and Targens respectively.

A board member at Daimler responsible for Finance and Controlling and Daimler Financial Services, Bodo Uebber was quoted by an automotive magazine saying,

“This pilot project is our first step in testing the wide variety of possibilities for using blockchain technology and assessing this technology’s potential for future transactions and financial processes… Simultaneously with launching the Schuldschein, we conduct other projects to determine where blockchains could also be used to increase efficiency and support our business models…”

The development is one of the many blockchain based implementations in the automotive sector. While this particular project focuses on financial aspects, there are other companies that are currently exploring the use of blockchain technology for vehicle data collection, interconnecting the future self-driven cars on a distributed grid and more.

Earlier this year, Daimler acquired PayCash Europe, a Bitcoin friendly payment processing service. With the new acquisition, the company announced its plans to bolster the capabilities of its MercedesPay service. Through MercedesPay, users will be able to pay for car sharing and international financing services using Bitcoin and other conventional payment methods.

Ref: Automotive World | Image: NewsBTC