Sberbank was the first in Russia to receive a patent for a system of automatic execution of repo transactions using blockchain. The solution is fully developed by the bank’s specialists.
As reported on the website of Sberbank, the terms of the repo transaction are recorded in a smart contract, which then executes the first part of the transaction, sending participants cash and securities.
The system also tracks market value.securities during the entire transaction cycle. Based on this information, the smart contract automatically settles between the parties, and then closes the transaction.
Sberbank vice-president Andrei Shemetov noted that the bank was the first financial institution in Russia to receive a similar patent.
Blockchain allows evencomplex operations such as repurchase agreements, without intermediaries. In addition, the solution will allow the bank to reduce risks, and customers - to save money on financing.
In December, Sberbank entered into an over-the-counter repo transaction with Interros, a private investment company, using smart contracts, digital signatures and the Hyperledger Fabric platform.