Blockchain-based Financing Method for Industrial Capital Goods
Joint project with Bosch, Daimler Mobility and the Stuttgart Stock Exchange Group // Digital tokens for investments in industrial goods // Repayment linked to actual use.
51nodes has developed a flexible financing method for industrial capital goods based on a blockchain in a joint project with the Bosch research team “Economy of Things”, Daimler Mobility and the Stuttgart Stock Exchange Group. In addition to exploring technical feasibility, the project, which had been underway since May 2019, also included legal and regulatory aspects.
With the new method, on the one hand, investors can invest in industrial capital goods such as machines, vehicle fleets or energy infrastructure via digital tokens. On the other hand, the issuers of the tokens benefit from linking their financing costs to the actual use of the financed goods according to a pay-per-use model. The provision of relevant usage data creates transparency and forms the basis for variable payouts to investors. The Ethereum blockchain served as technical basis for the project. The project partners have filed a patent application for the method of linking the usage data to a token.
“The project demonstrates new types of investments being made possible by blockchain-based tokens for investors in the industrial sector. At the same time, companies will gain more leeway for financing capital goods. With this new market and other emerging markets in mind, we are creating an end-to-end ecosystem for the issuance, trading and custody of digital assets,” says Dr. Ulli Spankowski, Chief Digital Officer of the Stuttgart Stock Exchange Group.
“Because Bosch is also an industrial goods manufacturer, we are interested in the acceptance of the new financing method among industrial companies. We currently assume that blockchain-based approaches will make the financing and operation of industrial machinery more flexible and thus significantly more attractive.,” says Werner Folkendt, Product Owner Industry/Logistics in Bosch’s “Economy of Things” project.
Harry Behrens, Head of the Blockchain Factory at Daimler Mobility: “With the help of so-called security tokens, Daimler Mobility is offering new services, for example in the field of electromobility for financing charging infrastructure or fleets. Required mechanisms are already provided for in the design of the software and run fully automatically, promising large efficiency gains, better scaling and thus increased cost efficiency in the financing of infrastructure and fleets. The cooperation with the Stuttgart Stock Exchange and Bosch has confirmed the potential in this area and we expect first launches on the market soon.
“With the new financing method, we link industrial capital goods to smart contracts and a blockchain via an Internet-of-Things approach. Thanks to the fruitful, interdisciplinary cooperation between all project partners, we are taking a big step towards the digital finance industry of the future,” says Jochen Kassberger, Managing Director of 51nodes.
Press mentions of the project: