Sberbank CIB (MICEX: SBER), the corporate investment arm of Russia’s largest bank, MTS (MICEX: MTSS), the leading telecommunications operator in country, and the National Settlement Depository (NSD) have issued rouble-denominated commercial bonds through smart contracts.
Sberbank CIB (MICEX: SBER) organized the issue of MTS (MICEX: MTSS) corporate bonds with a 6-month maturity worth 750 million rubles, while the NSD provided its own blockchain platform for the transaction, based on Hyperledger Fabric 1.1.
The integration of a full DVP (Delivery versus Payment) model into the blockchain platform allowed for the simultaneous movement of bonds and cash flows. The system also provided for the dynamic selection of network participants, enabling access to a wide range of investors, and updated to the latest version of Hyperledger Fabric.
The issuer, the NSD and the investor all had access to the decentralized platform for the transaction. The project provided confidentiality for all parties, and accounted for the specifics of Russian legislation.
The system works only with digitized assets, making the process of placement, circulation and accounting as transparent as possible. Each participant has the opportunity to monitor the status of the transaction and exchange documents online.
By Ekaterina Ulyanova