Daimler LG, parent popular brands like Mercedes-Benz, has tapped into blockchain tech with the launch of a pilot project.
German automaker Daimler AG continues its foray into integrating blockchain technology with the issuance of a year-long corporate bond, also known as a Schuldschein. With a volume of €100 million, the automotive giant partnered Landesbank Baden-Württemberg (LBBW), Germany’s biggest state-backed banking group, to launch the one-year corporate Schuldschein.
The corporate loan instrument pilot also saw participation from Esslingen-Nürtingen, Ludwigsburg and Ostalb, three savings banks who acted as lenders in the process. The announcement notably adds that the entire transaction of the loan agreement, from origination, distribution, allocation and execution to the next stage of confirmation of repayment and interest payments, were carried out over a blockchain.
While details are scarce as to the kind of blockchain employed, the development of the decentralized ledger was facilitated by TSS and Targens, the IT subsidiaries of Daimler and LBBW respectively.
AG board member Bodo Uebber, who oversees Daimler Financial services, further added the automaker is pressing ahead with other blockchain projects to assess their impact in increasing efficiency in other business models.
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.
Daimler’s first-known foray – at least publicly – in financial technology saw the acquisition of digital payments firm PayCash Europe SA in January, a platform that also enables bitcoin services across the European Union. Daimler referred to its new acquisition as an ePayment company with “solutions for cryptocurrencies, such as Bitcoin and eWallet systems.” Ultimately, the purchase will help the automaker develop ‘Mercedes Pay’, an on-the-go payments app that is likely to be integrated with Uber-competitors and car- and ride-sharing platforms ‘Car2Go’ and ‘mytaxi’ both owned by Daimler AG.
The following month, Daimler AG joined the open-source cross-industry blockchain working group Hyperledger, as a ‘Premium Member’.
The carmaker’s endeavor to explore and implement blockchain technology was summed up by Kurt Schäfer, Vice President Daimler Treasury, who stated:
Blockchain can affect nearly the entire value chain…We want to do this in all areas of application that are important to us: customer relations, sales and marketing, supplier management, digital services and financial services.
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