Russia’s Largest Bank Completes Its First Blockchain-Enabled Bond Transaction


Sberbank, which is Russia’s largest bank, has announced that its corporate and investment banking arm, Sberbank CIB, and the largest mobile operator in Russia, Mobile TeleSystems MTS have developed and conducted 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.

The transaction was carried out on Hyperledger Fabric 1.1-based platform provided by NSD. Sberbank CIB used blockchain technology to create a delivery and payment model before the transaction that facilitated instantaneous money and bond transactions.

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.”

The three parties: Sberbank, MTS, and NSD, received access to the blockchain platform to carry out the transaction which led to transparency and confidentiality meeting all the requirements set forth by the Russian law.

Russian State Duma Committee for Legislative Work has also supported a bill about Digital Financial Assets. According to the head of the Legislative Work Committee Pavel Krasheninnokov:

“This bill aims to reduce the existing risks of using digital objects for transferring assets into unregulated fields for the legalization of bankruptcy fraud, sponsoring of terrorist groups and criminal incomes.”

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