When the corporation that backs Mercedes-Benz issued its first blockchain bond last month, not only did it send shockwaves through the cryptosphere it also did something that impacts much more than just a single automobile brand.
The €100m ethereum bond, issued on a private version of the ethereum blockchain, signals the first step in a major strategy by Daimler AG to explore the technology. But it’s the particular type of bond – called a Schuldschein – that gives the project a massive global scale.
Since the financial crisis of 2008, this German version of a private placement has seen an explosion of use around the world, now totaling more than €20bn annually.
Daimler says use of an ethereum-based Schuldschein at scale isn’t likely anytime in the immediate future, its success is already encouraging the German firm to trial similar tactics even more.
According to Daimler AG’s senior manager of treasury process management, Eva-Marie Scholz, multiple business departments in the firm are now exploring these use cases as a result.