On 22 December, the RUB 500 million commercial bond issue of MegaFon was paid off at par value, having Raiffeisenbank as the organizer and buyer of the bond issue. The transaction was carried out on National Settlement Depository (NSD) platform and generated great interest by issuers and investors in the new technology for accounting rights to securities.
As part of the transaction’s structure, an issuer, a CSD, and an investor received access to a decentralized platform. NSD began working on the platform prototype for bond issues in the first quarter of 2017. The system works only with digitalized assets, and each transaction participant is able to exchange documents online and monitor the process of making the transaction.
Cryptographic protection and verification allow all operations to be conducted electronically. When a transaction is carried out on the basis of blockchain, requirements in the system’s technical backup are eased, and the necessary fault tolerance is achieved via a physical distribution of the system’s copies in several sites.
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