For the first time together Daimler AG and Landesbank Baden-Württemberg (LBBW) have done and executed a financial transaction wit the use of blockchain technology. It has been proved that it can be used for capital markets in parallel with the process that is required by regulatory authorities. Daimler then started a €100 million 1 year corporate Schuldschein project within which savings banks (Kreissparkasse) Esslingen-Nürtingen, Ludwigsburg and Ostalb as well as LBBW acted as lenders. The entire transaction was digitally carried out via blockchain technology in cooperation with the IT subsidiaries TSS (Daimler) and Targens (LBBW).
“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.”
Bodo Uebber – Member of the board of Management Finance & Controlling/Daimler Financial Services
- Potential & Gather Know-how
For the creation of new business models, Daimler and LBBW will test the potential of blockchain technology and gather know-how. Moreover, Daimler implements an open-source culture, actively shapes the future of the »Internet of Values«, and gains access to talented individuals and innovations as an active partner in the global technology and startup environment.
“Daimler was an ideal partner of us, because this company is also greatly interested in using blockchain. Thanks to the constructive and agile collaboration in a joint team, we were soon able to use this technology in a real transaction.”
Rainer Neske, Chairman of the Board of managing Directors of LBBW
The technology of the future – using Blockchain will increase the automation of financial transactions so they will be executed much faster and more cost-efficient than in the past. As a result, digital processes will replace labor-intensive manual steps that are so far necessary for processing Schuldscheindarlehen – for example during the creation of loan contracts and the examination of received payments. And not letting aside the safety and security of this new business model.
“We, as a leading automaker, want to play an active role in the global blockchain community and help shape the cross-sector blockchain standards.”
Kurt SchäferVice President Daimler Treasury
- Blockchain technology makes it possible to conduct direct and secure financial transactions worldwide within seconds. In this technology, blocks of digital data are decentrally saved on several servers. The transactions also receive a cryptographic signature that makes it much harder to manipulate them.