Blockchain technology is helping banks from different countries to improve their efficiency and offer better products and services. Sberbank, the largest bank in Russia, was able to conduct a $12 billion Dollars transaction using smart contracts.
Sberbank Uses Smart Contracts For Transactions
Blockchain technology is being adopted by many financial institutions, and Sberbank is not lagging behind. According to a press release uploaded by Sberbank on May the 16th, the bank has issue bonds with settlement in roubles using smart contracts via NSD.
The statement reads as follows:
“Sberbank CIB, the corporate and investment banking business of Sberbank, MTS, a leading Russian telecoms operator, and the National Settlement Depository (NSD) have placed commercial rouble-denominated bonds using smart contracts.”
The bond placement, circulation and record keeping process is highly transparent via smart contracts. All the participants are able to exchange documents and other files online and track the status of the transaction. As settlements are carried out in the ledger system, the transactions are faster compared to the older system.
A complete securities lifecycle was carried out using smart contracts, from placement to the issuer’s performance of its obligations to investors, including settlement in roubles. Additionally, the bank explained that all the work with accounts was confidential and in line with the Russian law.
Senior Vice President of Sberbank and Head of Sberbank CIB, commented:
“Sberbank is the leader in terms of introducing high-tech and digital innovation in Russia’s financial sector. This MTS bond issue not only allowed us to confirm the reliability an 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.”
Russia is a country that has several times embraced blockchain and cryptocurrencies. In the past, the City of Moscow launched an Ethereum-based voting system for its Active Citizen platform. This allows people to vote for different city proposals and make the life more liveable.
Additionally, the country has opened two cryptocurrency agencies in Vladivostok and it features the first blockchain school. At the moment, Vitalik Buterin is advising at this educational institution.