Daimler AG Launches Ethereum Blockchain Pilot

Stuttgart-based automobile manufacturer Daimler AG has launched a one-year corporate Schuldschein (or promissory note) in partnership with Landesbank Baden-Württemberg (LBBW). Savings banks Kreissparkasse Esslingen-Nürtingen, Ludwigsburg, Ostalb, and LBBW acted as lenders. At a volume of 100 million euros, the entire transaction was executed by TSS and Targens (Daimler’s and LBBW’s IT subsidiaries respectively) using blockchain technology.

In an e-mail to ETHNews, Hendrik Sackmann, Daimler’s head of finance, strategy, HR, and external affairs communications confirmed that the company “used [an] Ethereum blockchain for this prototype project on a private basis.”

Sackmann would not disclose financial details for the new instrument.

LBBW’s Chairman of the Board of Managing Directors Rainer Neske applauded the trial’s success.

“This pilot shows our competence at digitization of financial services for our corporate customers. Technical progress opens completely new ways to make financial processes simpler and more efficient and enables new business models.”

“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,” said Bodo Uebber, a member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Financial Services.

“Simultaneously with launching the Schuldschein [promissory note], we conduct other projects to determine where blockchains could also be used to increase efficiency and support our business models,” added Uebber.

Kurt Schäfer, vice president of the Daimler Treasury, noted that blockchain may impact “the entire value chain.”

“We want to do this in all the areas of application that are important to us: customer relations, sales and marketing, supplier management, digital services, and financial services.”

It’s clear that the automobile manufacturer is driving innovation on and off the road.