German industrial giant Siemens AG has used the 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, the companies said on Monday. Siemens issued €100,000 worth of the crypto securities under the Germany Electronic Securities Act (eWpG) on September 13 and then redeemed them three days later. Payments were made on the Onyx network using the JPM Coin system, while asset transfers were made using the SWIAT network’s delivery versus payment (DvP) mechanism.
The entire process took 93 seconds from the time the parties confirmed the trade on SWIAT until the final settlement confirmation was sent to the parties indicating that the assets and payments had been completed. DekaBank also participated, acting as a regulated registrar of crypto securities on the SWIAT network. The deal marked the beginning of Onyx and SWIAT’s collaboration to develop blockchain-based asset issuance products for commercial banks. Their goal is to shorten value chains, increase transaction flexibility and speed, and ultimately make blockchain-based financial transactions scalable for commercial banks, the companies said.
The tokenization of traditional financial instruments, or real-world assets (RWAs), has become a fast-growing area for blockchain technology, with major banks increasingly getting involved. JPMorgan was an early leader in this space with Onyx and its blockchain-based settlement technology, JPM Coin.
Image: Visbanking