First Blockchain-Based Commercial Securities Transaction In Russia Performed By Sberbank

Sberbank CIB which is today the largest corporate and investment banking business of Russia’s largest bank Sberbank, directed the main blockchain-based commercial securities transaction in Russia on May 16. The transaction was finished in association with MTS, a main Russian telecoms operator, and the National Settlement Depository (NSD).

Sberbank CIB sorted out the issue of MTS corporate securities for the estimation of RUB 750 bln ($12 mln) with half year development. The transaction was completed on the Hyperledger Fabric 1.1-based blockchain platform which has been represented by the NSD.

Commercial securities appear to be unguaranteed and unprotected fixed-income obligations issued by a company and placed on an over-the-counter (OTC) market via closed subscription. Keeping in mind the end goal to lead the transaction, an entire Delivery versus Payment settlement display was supposedly executed utilizing blockchain innovation technology, which made the transfer of the securities and money synchronous.

Every one of the three parties got access to the blockchain platform to play out the transaction, which guaranteed straightforwardness and secrecy in dealing with the accounts, and met the prerequisites put forward by Russian law. Every member of the transaction could could exchange documents online and track the transaction status continuously. Igor Bulantsev, Senior Vice President of Sberbank and Head of Sberbank CIB, 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.”

In December, Russia finished its first government-level blockchain execution. Sberbank declared that it is joining forces with Russia’s Federal Antimonopoly Service to execute document transfer and storage utilizing blockchain innovations.

Prior today, the Russian State Duma’s Committee for Legislative Work upheld a bill “On Digital Financial Assets”, which was first arranged in March of this current year. As per Pavel Krasheninnikov, leader of the Legislative Work committee, the bill plans to “minimize the existing risks of using digital objects for transferring assets into an unregulated digital environment for legalization of criminal incomes, bankruptcy fraud or for sponsoring terrorist groups.”

 

 

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