This week Russia’s largest bank, Sberbank, placed a commercial bond using blockchain. The RUB 750 bln bond is for MTS, a Russian telecoms company, and used the National Settlement Depository’s (NSD) blockchain.
Bonds of this type are placed and traded in the over-the-counter market. The blockchain allows for the simultaneous transfer of securities and money. Hence the transaction involved the entire life cycle using smart contracts: they place the bond, the issuer performed its obligations, and settlement was made in roubles.
Each participant was able to exchange documents online and track the progress of the transaction. Because of the on-ledger settlement, the transactions were faster than usual. Moreover, the bond placement, circulation, and record-keeping are highly transparent.
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