Sberbank completes first blockchain-enabled commercial bonds transaction in Russia

Sberbank completes first blockchain-enabled commercial bonds transaction in Russia


Sberbank CIB, corporate and investment-banking business of the largest in Russia  Sberbank, conducted the first transaction on bonds in Russia, according to Sberbank on May 16. The transaction was completed in partnership with an anchorman by the Russian telecommunication operator MTS and the National Settlement Depository (NSD).

Sberbank CIB organized producing of corporate bonds МТS in size of 750 milliards roubles (12 million dollars the USA) with the 6-monthly term redemption, using smart contracts on the Blockchain-platform Hyperledger Fabric 1.1, given NSD.

Commercial bonds are unsecured securities with fixed yield issued by the company and placed on the over-the-counter (OTC) through private subscription. For the implementation of the transaction, apparently, was implemented a complete model for calculation of “Delivery versus payment” using the blockchain technology, which provided simultaneous transfer of bonds and money.

All three parties gained access to the platform blockchain for the transaction, which provided transparency and confidentiality when working with accounts and meet the requirements established by Russian legislation. Each party to the transaction can share documents online and track transaction status in real time. Igor Bulantsev, Senior Vice President of Sberbank and Chairman of Sberbank CIB, said:

“This bond issue MTS not only allowed us to confirm the reliability, efficiency and security of the blockchain platforms and perform complex structured transactions involving securities, but also demonstrated the potential that this technology should develop in the digital economy of Russia”.

The Chairman of the Executive Board of NSD Eddie Astanin said:

“The NSD was one of the first organizations in Russia that have adopted the blockchain. We started working on the platform prototypes for transactions with bonds in the first quarter of 2017. The deal with Sberbank and MTS was the first of its kind and shows that the blockchain is a technology for mass use, which ensures privacy and speed when working with securities “.

He also added that the ultimate goal of the agency is the development of the infrastructure for recording of digital assets in partnership with the market leaders.

In December, Russia completed the implementation of the first unit at the state level. Sberbank announced that it is cooperating with the Federal Antimonopoly Service of Russia on introduction the transmission and storage of documents with use of the blockchain  technology..

Earlier today the State Duma Committee for legislative work supported the draft law “On digital of financial assets”, which was first produced in March of this year. According to the Chairman of the Committee of the legislative work Pavel Krasheninnikov, the bill is aimed at “minimizing the risks of use of digital objects for the transfer of assets in an unregulated digital environment for money laundering, fraud, bankruptcy or the financing of terrorist groups”.

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