According to CCN reportsAccording to CCN reports
, the investment and corporate banking arm of Sberbank and telecommunications giant MTS have announced Russias first commercial bond transaction using blockchain technology.
MTS said it has placed commercial bonds worth 750 million rubles (approximately $12 million) on a proprietary blockchain platform provided by the National Clearing House (NSD), powered by smart contract technology. The issuance period is six months and the annual interest rate is 6.8%.
MTS further stated that commercial bonds are issued in the over-the-counter (OTC) market through private subscriptions as privately traded fixed income securities. However, unlike the usual OTC issuance, this transaction is completed through DVP (Delivery Versus) settlement, so that the bond and fund delivery are carried out simultaneously. DVP settlement solves the problems that funds and bonds cannot be delivered synchronously, which is easy to cause problems such as slow remittance and transfer, untimely fund settlement, etc., so that the efficiency of capital transactions can be significantly improved.Sberbank of Russia stated,This transaction is based on super ledger technology, which can achieve a high degree of transparency, that is, transactions on the platform can present a complete life cycle of commercial bonds.
The source code of the smart contract can be found on Github, and the process from fundraising, issuers fulfillment of its obligations to settlement is completed on a proprietary blockchain platform.Each participant can exchange digital documents online and track the status of transactions in real time, which greatly improves efficiency.
at present,at present,There are many examples of application of blockchain in the bond market at home and abroad.
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In January 2017, the Commonwealth Bank of Australia developed a blockchain government bond trading system and tested the issuance of Queensland government bonds through the system. The move is aimed at reducing transaction costs and attracting a wider range of market participants. Commonwealth Bank of Australia described the blockchain structure as a virtual crypto-securities and said it was the worlds first experiment between a bank and a government financial institution such as QTC.
In May 2017, the World Bank and the Kenyan government sought to use blockchain technology to launch a mobile phone-based bond M-Akiba, which plans to sell about $47 million in similar products through the blockchain.
In September 2016, BNP Paribas announced a partnership with renewable energy providers Lendosphere, Enerfip and Lumo to try to issue mini-bonds for private companies through blockchain technology. The distributed ledger developed by the bank will record all minibonds issued through the platform and their changes in ownership, ensuring safer, faster and more efficient execution of minibond transactions.
In the current bond market, bond issuance needs to go through processes such as registration, filing, custody, listing and circulation; bond transactions include inquiry, transaction, order confirmation, order matching, transaction amount accounting and other steps, and then delivery is required settlement. It is a long and cumbersome process from bond preparation to final delivery. Under the background that the development of the bond market puts forward higher requirements on transaction costs and efficiency, such cumbersome business processes cannot well meet the needs of investment and financing entities.
