The Russian Federation's first transaction on placement of ruble bonds through a blockchain

The National Settlement Depositary (NSD) provided the settlement platform for bond issue of mobile Russian operator "MegaFon" using blockchain technology. Raiffeisenbank became the organizer and the buyer of bond issue for the amount of 500 million rubles.

The transaction is unique for the market as for the first time in the Russian practice the blockchain technology is applied to its implementation. Within structure of the transaction access to the decentralized platform is got the issuer, by central depository and the investor.

Work on a platform prototype for carrying out transactions with bonds started in the first quarter 2017. Within the project the problem of ensuring confidentiality was solved during the work with data on balance of securities and also features of the Russian legislation are considered.

A system works only with the digitized assets, doing process of placement, the address and accounting of bonds by the most transparent and simple. Each participant of the transaction has an opportunity to exchange documents online, to keep track of the status of carrying out the transaction. Use of cryptographic protection and verification allows to perform all operations in electronic form that gives the chance to save time, to reduce costs of each of participants of the transaction, to online register/sign documents, to avoid a possibility of an error when signing documents.

Notes

Commercial bonds – the financial off-exchange instrument implemented within "bondization" of the Russian economy. The first issue and the program of commercial bonds executed on the traditional centralized technologies were registered by NSD in the summer of 2016. The tool has a number of the indisputable advantages including the unsecured nature of loan, lack of requirements to a financial position and terms of existence of the borrower, lack of restrictions on volume and term of loan. Commercial bonds are placed on the closed subscription.

The digitized asset – the paperless form of the tool of financial market allowing to make its accounting in the electronic register. In this project the mechanism of tokenization of an asset – creation of the protected token special cryptographic for each bond representing digital version of the proof of property on this paper is used. Thus account of the rights to bonds is kept directly in a blockchain.

Cryptographic protection – ensuring confidentiality, control of integrity and authenticity of information using means of cryptography of sufficient level of protection against cyber attacks and other risks.