Bitrazzi
Bitcoin, Cryptocurrency And Blockchain News

Sberbank and MTS Complete First Ever Commercial Bond Transaction in Russia

0

Russia’s largest bank, Sberbank, have announced that their corporate and investment banking arm, Sbrebank CIB, has successfully completed Russia’s first ever commercial bond transaction over blockchain. Telecoms firm MTS issued 750 million Rubles’ worth of corporate bonds over smart contracts, with a 6-month maturity.

Both parties confirmed that the transaction took place using the delivery versus payment (DVP) method and that it had been compliant with Russian law. Senior Vice President of Sberbank Igor Bulantsev, said :

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.

Meanwhile, MTS were sure to clarify that they wanted to move things forward:

MTS intends to continue employing blockchain-based solutions, primarily in financial markets, due to [the technology’s] clear advantages in increasing transaction transparency and the participants’ confidence, while substantially reducing transaction costs.

– Andrey Kamensky, Vice President of Finance, MTS.

The news comes only a few months after the government of Russia announced that it had successfully implemented blockchain in one of its systems, so the MTS / Sbrebank CIB is the next step forward in Russia’s blockchain adoption journey.

Meanwhile, news of the crypto Ruble, Russia’s answer to the Venezuelan Petro, has seemingly gone cold. The last report on the progress of this currency was that it could be ready for release mid-2019.

Image Credit: Deposit Photos

Comments