Sberbank Of Russia Concludes First Repo Transaction On Blockchain
For the first time, Sberbank of Russia, together with the Region Investment Group and the National Settlement Depository (NSD), entered into an over-the-counter repo agreement using the distributed ledger technology, as follows from a press release of the bank.
A repo transaction is a financial instrument for the securities purchase and sale, but it is issued as a short-term loan. The parties carried out OTC repo in Russian rubles in accordance with all regulatory and legal acts of the country. The deal was concluded and signed by all participants in an electronic form using the distributed network of the NSD Security Management System.
Sberbank was the seller, and the Region Group was the buyer. NSD performed the role of a settlement agent. The financial transaction was performed automatically on blockchain, the parties submitted orders to their distributed ledger node, and the smart contract confirmed the transaction.
The transaction conduct has become a serious step in the further automation of work processes between Sberbank and its partners. Blockchain has helped make the sale and purchase for all participants trustworthy and secure, Sberbank VP Andrey Shemetov stated.
In the future, such financial operations will gain great popularity in the over-the-counter repo market, Andrey Zhuikov, a representative of the Region Investment Group, stressed.
At the end of November 2018, Sberbank already used the Hyperledger Fabric platform to execute a bilateral repo transaction with the investment company Interros.
Earlier, the Russian Union of Industrialists and Entrepreneurs (RSPP) was created, which will consider disputes related to blockchain technology and other innovations.