Copy link
Increase text size
Decrease text size
Link copied

Russia’s NSD, Sberbank and MTS complete blockchain-based commercial bond transaction

Mon, 26 Nov 2018, 05:33 am UTC

The National Settlement Depository (NSD), Russia’s central securities depository; Sberbank, the country’s largest bank; and telecom giant MTS, have announced the results of commercial bond placement using blockchain.

The blockchain trial was first announced in May of this year when MTS said that it issued commercial bonds using blockchain smart contract. It involved placing commercial bonds in the amount of RUB 750 mln with a maturity of 182 days and an annual coupon rate of 6.8% on the OTC market. Sberbank CIB, Sberbank’s corporate investment business, was the purchaser and the organizer.

“The nominal value of MTS’ commercial bond issue - RUB 750 million - has been redeemed,” the release said. “The case of the full life cycle of a security in the form of a set of smart contracts (from placement to the full performance of the issuer’s obligations to investors) has been successfully implemented.”

For the transaction, the NSD provided its own blockchain platform, which is based on Hyperledger Fabric 1.1. The transaction was executed via DVP (Delivery versus payment) settlement model based blockchain, which allowed simultaneous movement of securities and funds.

To perform the transaction, the issuer, the CSD, and an investor were granted access to the decentralized platform. In addition, it also allowed the possibility of changing the composition of network participants to broaden the circle of investors that can be worked with.

The confidentiality of work with accounts was ensured, and Russian legislative specifics were taken into consideration, the release said.

Andrei Shemetov, Vice President of Sberbank, Head of the Global Markets Department of Sberbank CIB, said that blockchain technology is very important for the banking sector as it helps to reduce costs, enhance the speed and safety of transactions, and provides an unprecedented level of trust and transparency in any transactions.

“I am sure that our joint blockchain project with NSD and MTS is just the beginning, and in the next 5-10 years, blockchain-based products and services, including smart contracts on the basis of blockchain, will become a standard thing,” Shemetov said.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $6,932.98 (+11.47%)
  • Ethereum (ETH) $144.10 (+10.74%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $238.30 (+11.28%)
  • Bitcoin SV (BSV) $179.28 (+11.89%)
  • Bitcoin (BTC) $6,932.98 (+11.47%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft