Russia’s MTS Issues First Commercial Bonds on Blockchain

MTS in partnership with Sberbank has issued the first Russian commercial bonds via smart contracts. The blockchain platform was designed by National Settlement Depository. Sberbank became also the main buyer of the bonds for a total sum of RUB 750 million.

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Igor Bulantsev, head of Sberbank CIB, commented:

“Issuing MTS bonds has not only allowed us to confirm the reliability, efficiency, and safety of the blockchain-based platform for organizing and conducting complex structured securities transactions but also demonstrated the great potential of the technology for the development of Russia’s digital economy.”

During the transaction, NSD utilized full Delivery versus Payment (DVP) settlement model which allows simultaneous transfer of funds on the blockchain. The system is now updated to the latest version – Hyperledger Fabric 1.1.
Andrey Kamensky, Vice President, Finance, Investments and M&A, MTS, said:

“Today, with the participation of our partners, we have successfully executed the first commercial bond issue in Russia using smart contracts based on blockchain throughout the entire settlement chain – from security placement and cash receipt to fulfillment of all obligations to the investor.”

The transaction was conducted through a de-centralized platform and proved to meet all standards of security.

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