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 Monday. Siemens issued €100,000 worth of crypto securities under the German 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 delivery versus payment (DvP) mechanism of the SWIAT network.
The entire process took 93 seconds from the time the parties confirmed the transaction on SWIAT until the final settlement confirmation was sent to the parties, indicating that the assets and payments had been completed. DekaBank also participated and acted as a regulated registrar of crypto securities on the SWIAT network. The deal marked the beginning of collaboration between Onyx and SWIAT to develop blockchain-based asset issuance products for commercial banks. Their goal is to shorten value chains, increase the flexibility and speed of transactions 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 becoming increasingly involved. JPMorgan was an early leader in this space with Onyx and its blockchain-based settlement technology, JPM Coin.
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