Sberbank And Interros Group Perform OTC Repo Transaction Using Blockchain Technology
Sberbank and Interros Group have carried out an OTC repurchase agreement transaction. In order to make the over-the-counter transaction the companies used smart contracts on a blockchain. The information was released by Reuters Russia on November 30.
The private equity firm Interros Group is located in Moscow and was founded by Vladimir Potanin back in 1990.
According to Andrei Shemetov, the Head of Global Markets department and vice president at Sberbank, the transaction is real, legally binding and was performed using a smart contract. Additionally, in order to be completely valid, the transaction included digital signatures using the IT platform provided by Sberbank.
Furthermore, the article says that the transaction corresponded to the average volume of the interdealer repo transaction. In addition to it, the transaction is secured by the pledge of Eurobonds of the Russian issuer of the first tier, informed Shemetov.
About it, he commented:
“In the long term, the conclusion of transactions through the blockchain platform will reduce transaction costs and errors through automation, as well as increase transparency and trust among all participants in the financial market.”
As reported by Reuters, with this software environment it will be possible to audit data on a bilateral basis. The blockchain-base repo transaction will also enhance automation of settlement and operational functions.
The smart contract that is used by the platform and that will be used by the decentralized infrastructure of the financial market was written in the Go programming language. Moreover, it has also been deployed using the Hyperledger Fabric platform.
Sberbank has been involved in the blockchain market on many different occasions. According to the CEO of Sberbank, blockchain technology will be ready for use in three to five years and it will flourish within the next ten years.