Sberbank Buys Commercial Bonds Issued Over Blockchain Platform

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Russian bank Sberbank CIB and telecoms company MTS have conducted what they say is the country’s first commercial bond transaction made with blockchain. MTS declared Tuesday that it’d placed commercial bonds of 750 million rubles, with the primary purchaser being Sberbank, utilizing A proprietary blockchain platform supplied by the National Settlement Depositary and based on Hyperledger Fabric 1.1. The bonds issued possess a maturity of 182 days with an annual coupon rate of 6.8 percent and have been placed on OTC market, based on a press release. The transaction used the delivery versus payment method of settlement and was compliant with Russian legislation, it adds.

Andrey Kamensky, VP of finance, investments and M&A at MTS, commented that the successful blockchain transaction was carried out through the whole settlement chain, from collateral positioning and cash receipt to fulfillment of all obligations to the investor. Kamensky added: MTS intends to continue using blockchain based solutions, mainly in financial markets, because of obvious advantages in increasing the transparency of transactions and the trust of participants, while significantly reducing transaction costs.” . As reported by CoinDesk, the NSD, the central depository for Russia’s biggest securities market group, declared attempts at its Hyperledger based commercial bond trading platform in October 2017.

At that time, Raiffeisenbank Russia had already tested the system with the purchase of $10 million worth of bonds at a cell phone network. According to Eddi Astanin, chairman of the board NSD: The pioneering transaction with Sberbank and MTS confirmed blockchain’s standing as an effective industrial technology supplying confidentiality and speed during securities settlement.” . Sberbank image via Shutterstock. The leader at blockchain news, CoinDesk is a media outlet that strives for the greatest journalistic standards and complies with a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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