Tuesday, 07 July 2020
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Daimler issues the first fully digital Schuldschein with LBBW

New digital procedure used for the first time legally effective for Daimler AG Schuldschein of € 25 million

In cooperation with LBBW, Daimler AG has issued a fully digital Schuldschein for the first time. The loan with a volume of € 25 million and a term of two years was disbursed on Wednesday. The transaction was marketed exclusively via the DEBTVISION digital financing platform and was fully digitally developed by LBBW using distributed ledger technology (DLT) and electronic signatures.

The transaction is the first legally effective, fully digitalized Schuldschein transaction in Germany that was marketed via a platform and processed using distributed ledger technology without a parallel paper-based process. Daimler and LBBW had already issued a Schuldschein in 2017 using the distributed ledger technology, of which blockchain is the best-known application. However, the lending process at that time was additionally handled in the traditional way with physical document exchange in order to meet the regulatory requirements. A follow-up project has now successfully developed a solution for this: Loan agreements can now be exchanged using tamper-proof transaction databases and signed digitally with legal effect. targens GmbH, LBBW’s IT subsidiary, again provided support for technical implementation.

“Blockchain technology offers the potential to make existing financial processes more efficient and transparent. Processing time and transaction costs can be significantly reduced. At the same time, the technology allows to increase the security of transactions and to minimize risks. Especially in the area of payment transactions, but also in securities transactions, bond issues and trade finance, blockchain technology can bring major efficiency gains in a scalable ecosystem in the medium term,” said Kurt Schäfer, Head of Daimler Treasury.


source: automotiveworld.com

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