As of recently, the investment and corporate banking arm of Sberbank and the telecom giant MTS in Russia have conducted the first commercial bond transaction all using blockchain technology.
The announcement says that MTS has placed commercial bonds that are worth RUB 750 million which is approximately $12 million on a proprietary blockchain platform provided by the country’s National Settlement Depository that is powered by smart contracts technology.
The production-ready blockchain software is developed by the open source Linux Foundation-led Hyperledger consortium. The bank also revealed the high transparency process and how it was facilitated by the blockchain.
The vice president at Sberbank and chief of Sberbank CIB, Igor Bulantsev, stated:
This MTS bond issue not only allowed us to confirm the reliability, efficiency and secure nature of the blockchain platform and carry out complex structured transactions involving securities, but also demonstrated the potential that this technology has to develop Russia’s digital economy.
Meanwhile, this is only an additional effort in Russia’s NSD which began testing the blockchain technology as early as April 2018 for an e-proxy voting system at the time. Ever since then, the authority has collaborated with the likes of the Chinese counterpart in order to develop blockchain applications in the post-trade space with a co-operative pact.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post