Russian bank Sberbank CIB and telecoms firm MTS have conducted what they say is the country's first commercial bond transaction made using blockchain.
The bonds issued have a maturity of 182 days with an annual coupon rate of 6.8 percent and were placed on OTC market, according to a press release. The transaction used the "delivery versus payment" (DVP) 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 entire settlement chain, from security placement and cash receipt to fulfillment of all obligations to the investor."
Kamensky added:
As reported by CoinDesk, the NSD, the central depository for Russia's largest securities exchange group, announced trials of its Hyperledger-based commercial bond trading platform in October 2017. At the time, Raiffeisenbank Russia had already tested the system with the purchase of $10 million-worth of bonds in a mobile phone network.
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According to Eddi Astanin, chairman of the board at NSD: "The pioneering transaction with Sberbank and MTS confirmed blockchain’s status as an efficient industrial technology providing confidentiality and speed during securities settlement."
Sberbank image via Shutterstock