The platform was developed single-handedly by the bank. It is the first bank in Russia to receive a patent for repo trade solution.
Using the latest platform, the participants in a deal can list the rules related to a repurchase agreement within an automated decentralized ecosystem, also referred to as a smart contract.
The participants can use e-signatures to sign a smart contract, with the funds and securities being transferred to the respective parties involved in the repo deal once the terms of the contract are met.
During the process, the traded price of securities in an open market is tracked and input to a distributed ledger on a continuous basis.
An external feed will provide the necessary data to the smart contract, which will release payments to the parties and conclude deal without third-party intervention.
The aforesaid platform encompasses the total procedures, from start-to-finish, thereby eliminating the need to compromise in any manner at a later stage.
The platform also avoids issues between the parties, thereby minimizing perils for the bank and make funding more accessible for customers.
Sberbank continues to trial and implement innovative fintech solutions, including those capitalizing on the capability of blockchain technology.
Last December, Sberbank, the National Settlement Depository (NSD) and Brokerage Company Region inked a repo agreement utilizing blockchain technology. The contract involved a RUB-denominated over-the-counter (OTC) repo backed by federal loan bonds (OFZs).