Sberbank, Russia’s Largest Bank, Will Use Blockchain for Bond Trading
The investment and corporate banking departments of Russian largest bank Sberbank and telecom giant MTS have announced that they will use blockchain technology to conduct Russian commercial bond transactions.
In a statement, MTS revealed that it has placed $12 million worth of commercial bonds on a proprietary blockchain platform and that Smart Deposit Technologies is provided by the National Depository Depository Corporation.
Sberbank also confirmed that the Hyperledger Alliance, led by the Open Source Foundation, has developed a blockchain software that enables currency-denominated commercial bonds to be realized. The bank added that the source code for smart contracts can be found on Github. In addition, the implementation of its obligations from the issuer to the highly transparent process of settlement with rubles is provided by the blockchain.
As a private-equity fixed-income security, commercial bonds are usually placed in the OTC market. The telecommunications giant said that the release period of MTS is 6 months, and the annual interest rate is 6.8%. In addition, the transaction is conducted through delivery and payment settlement. The blockchain also allows the participant’s list to dynamically change over time and later issue bonds to a wider range of investors.
In this example, issuers, central depositories, and investors can all access distributed blockchain ledgers to process transactions. Sberbank conveniently stated that each participant can exchange documents online.
Author: Marko Vidrih
image via http://tech.eu/brief/sberbank