Mobile TeleSystems PJSC: MTS Placed Bonds Using Blockchain Technology

MOSCOW, RUSSIA / ACCESSWIRE / May 15, 2018 / MTS PJSC (NYSE: MBT, MOEX: MTSS), the leading Russian telecommunications operator and digital service provider, has placed commercial bonds in the amount of RUB 750 mln using blockchain smart contracts, making it the first transaction of its kind in Russia.

The RUB 750 mln Series KO-П01 bonds with a maturity of 182 days and an annual coupon rate of 6.8% have been privately placed on the OTC market. For the transaction, the National Settlement Depository (NSD) provided its proprietary blockchain platform based on Hyperledger Fabric 1.1. The primary bond buyer was Sberbank CIS.

The transaction was executed via DVP (Delivery versus payment) settlement assuming simultaneous movement of securities and money using blockchain, the immutable ledger for recording transactions. The framework of the transaction was structured to include the possibility of a dynamic change in the composition of network participants in order to potentially open the issue to a wide range of investors.

Andrey Kamensky, Vice President, Finance, Investments and M&A, MTS, commented, “MTS continuously tests and implements new technologies across a variety of business areas, including corporate finance. As such, it is important for us to accelerate the launch of innovative solutions and reduce test time. Today, with the participation of our partners, we have successfully executed the first commercial bond issue in Russia using smart contracts based on blockchain throughout the entire settlement chain – from security placement and cash receipt to fulfillment of all obligations to the investor. MTS intends to continue employing blockchain-based solutions, primarily in financial markets, due to its clear advantages in increasing transaction transparency and the participants’ confidence, while substantially reducing transaction costs.”

Eddi Astanin, Chairman of the Board, National Settlement Depository, commented, “The NSD was one of the first institutions in Russia to begin working with blockchain, starting to develop the prototype platform for bond transactions in the first quarter of 2017. The pioneering transaction with Sberbank and MTS confirmed blockchain’s status as an efficient industrial technology providing confidentiality and speed during securities settlement. Our ultimate goal, in cooperation with market leaders, is to create an infrastructure for digital assets record, which is an important prerequisite to attract institutional investors, develop the market and accelerate growth in its capitalization.”

Igor Bulantsev, Senior Vice President, Sberbank CIB, commented, “Sberbank is the Russian leader in the field of technological and digital innovation in the financial sector. The issuance of MTS bonds allowed us to confirm the reliability, efficiency, and security of the platform based on blockchain for complex structured transactions with securities and once again proved the promise of technology for the development of the digital economy in Russia.”

For the transaction, the issuer, the central depository, and the investor had access to a decentralized platform. The project provided confidentiality in working with accounts and considered the requirements of Russian legislation.

A blockchain platform works only with digitized assets, making the process of bond placement, circulation and transaction recording fully transparent. Each participant has an opportunity to exchange documents online and monitor the status of the deal. Settlement is carried out directly in the accounting system, which allows participants to markedly accelerate the transaction. The chosen scheme of cryptographic protection allows all operations to be conducted in electronic format, in addition to the electronic signature service that is already available to the clients of the Moscow Exchange Group. The code for smart contracts is posted on GitHub: https://github.com/altoros/nsd-commercial-paper/ and is open in accordance with the requirements of the Hyperledger project, where Sberbank and the Moscow Exchange Group have been participating since 2016.

CONTACT:

Joshua B. Tulgan

Director, Department of Corporate Finance and Investor Relations

Mobile TeleSystems PJSC

Moscow, Russia

Tel: +7 495 223 2025

E-mail: ir@mts.ru

To learn more about MTS, visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/

SOURCE: Mobile TeleSystems PJSC

Related:

The savings Bank has declared war on cybercrime

Under the auspices of the world economic forum starts Global cyber security center. This was stated by Deputy Chairman of Sberbank, Stanislav Kuznetsov, speaking at the opening of the Center in Davos, Switzerland. The organization should be a key milestone in the development of the vast initiative of the WEF”s cyber security project, “Cybercrime project”, which the Russian Bank took an active part. The fact that cyber threats are becoming one of the major risk factors for the economic, financial and social spheres of life in the digital age, realize in all developed countries. Creating a platform for combating international cybercrime should be a powerful answer to hackers – the authorities of all levels and experts do not doubt.


photo: Natalia Gubernatorova

At a press conference in Davos, Stanislav Kuznetsov, said that Sberbank, which has already adopted the digital economy and take action against emerging cyber threats, expect development strengthen Bank’s position in this area with the opening of the Global centre for cyber security. “The centre should function as a unique platform of public-private partnerships, the development of which will occur in three key areas. These directions establish a mutually beneficial cooperation between public and private corporations, the formation of the necessary conditions for the organization of permanent exchange of information and the establishment of a reliable research centre, carrying out an independent assessment and analysis of the current situation in the field of cybersecurity in the international arena”, – said Deputy Chairman of Sberbank.

He also added that, for its part, Sberbank is ready to share with the participants a unique Center of information about the activities of large groups of criminals that commit attacks in the financial sector at the international level. “Last year we were able to prevent 100% of attacks against us,” Kuznetsov recalled and added that with the global threat of cybercrime to deal more effectively with joint efforts and to seek to ensure the security of the information space. As experts consider, in this regard, the experience of the most progressive Russian Bank whose clients are 120 million people, it can be very useful to other organizations around the world.

About the need to respond quickly to all the explosions of technological changes that occur in the modern world, said recently the Prime Minister of Russia Dmitry Medvedev at the Gaidar forum. He noted that today the risks of cybercrime make vulnerable all spheres of life, and gave the example that, unlike deadly weapons, aviation, submarine fleet, cyber warfare does not require large-scale industrial base, and therefore extremely dangerous. “Therefore, it is obvious that today all countries need much more efforts to ensure security in the digital space and closer coordination,” he called for cooperation in confronting cybercrime the Chairman of the government of the Russian Federation.

In 2017, against hacker attacks, the business has lost hundreds of billions of dollars in the financial sector criminals hacked ATMs, e-wallets and even entire payment system. Over the past year about 15 hacker groups attacked government structures, military establishments and private companies.

In the capture of members of one of these groups participated Sberbank. The savings Bank has supported law enforcement agencies, organized the collection of necessary information, which helped to prove the guilt of criminals.

General Director of information-analytical Agency Telecom Daily Denis review: Dewdrop said in an interview with “MK” which is now the wide spread of electronic money, Bank cards, electronic payment systems have led to the fact that the problem of cybercrime has covered a huge audience. “This is a common problem and work it must. Sberbank as the largest financial institution in Russia, which is responsible for the safety of their assets and millions of customers, can not do otherwise than to stand at the head of this struggle. They understand that they are to suffer most from cyber threats, so quite adequately decide this issue,” – said the expert.

“Our country, including President Vladimir Putin, has always strived to address the issue of cyber security at the international level: this issue was raised by Russia at the meetings of the “Big twenty”, and in the negotiations with the Americans were asked to talk about cooperation in this sphere. The establishment of the Global cybersecurity centre at the base of the WEF and the efforts of the savings Bank is very important because cyber attacks increase, grow in number and power, are a serious damage to individuals and legal entities in all countries. With such threats we must fight together”, – said in a conversation with “MK” Sberbank supported the initiative of the Chairman of the Duma Committee on financial market Anatoly Aksakov.

official channels

Related:

‘Russian spy in Downing Street’: Ukrainian interpreter in Theresa May talks accused of espionage …

Mr Yezhov’s wife is a Russian citizen and a declaration he filed in March about his family’s property revealed significant financial ties to the country.

His wife Yulia Miroshnikova, with whom he has a daughter worked at the Washington-based energy consulting firm Numark Associates, according to the declaration.

Ms Miroshnikova Ms Miroshnikova had holdings of 286,641 roubles and $31,713 in the Russian state bank Sberbank.

Ukrainian media reported that Mr Yezhov had once worked at the Ukrainian embassy in the United States and suggested he had been recruited in Washington DC.

Meanwhile a Commons debate on Moscow’s interference in UK politics was interrupted while a “Russian diplomat” was escorted from the public gallery after accusations he was “filming and taking pictures”.

Labour MPs Chris Bryant and Ben Bradshaw could be seen pointing at the mystery man during a debate on Russian interference in UK politics.

However the man, speaking outside the public gallery, expressed his confusion at the accusations.

Speaking anonymously, he said: “I work for a think tank in London, my phone is taped up over the camera so I can’t take pictures.

“I was just here for the day, I didn’t know what was happening.”

During the debate, Mr Bradshaw could be heard saying: “He is from the Russian Embassy. He has been taking pictures.”

Related:

  • No Related Posts

Russia’s Biggest Bank Pilots Money Transfer on an IBM Blockchain

Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

Sberbank has piloted the Russian banking industry’s first ever payment transaction over a blockchain.

Sberbank, Russia’s biggest bank by assets, has executed a real-time money transfer over an IBM-built blockchain based on the Hyperledger Fabric – a blockchain software. The transaction involved a money transfer of an unknown sum between a payer and a receiver in two separate banks, facilitated by Sberbank’s IT systems complete with a web application for the bank’s client to track the transfer.

As reported by CCN in July, the Linux Foundation-led open-source Hyperledger blockchain consortium formally released its first production-ready blockchain software in the Hyperledger Fabric 1.0.

“The blockchain solution created by Sberbank has allowed us to make the first pilot payment transaction – using IBM Blockchain technology – in the history of the Russian banking industry,” Sberbank’s managing director Stella Kudachkina said.

Sberbank also listed a number of participating partners involved in the pilot payment transaction, hinting at a future of blockchain payments for retail banking customers. They include MegaFon, Russia’s second-largest mobile phone operator; MegaLabs, a Moscow-based IT solutions provider; Alfa-Bank, a major Russian private bank and; technology giant IBM.

Notably, Sberbank and Alfa-Bank hosted the blockchain’s nodes with the ultimate aim to “serve as the primary scenario for developing a new settlement function” between the two banks.

The Sberbank executive added:

The advantage of using this technology when performing settlements is the high speed at which transfers are made: after the money is sent the transaction is recorded on the receiver’s account almost instantly, in real time, unlike the traditional system that is used to make transfers.

Sberbank’s announcement comes within months of the bank joining the Enterprise Ethereum Alliance (EEA), a consortium of companies, startups and governments working to leverage open-source Ethereum blockchain technology for enterprise solutions.

Earlier this year, the bank’s chief executive Herman Gref – notably a bitcoiner – claimed that Russia will see commercial applications of blockchain technology by 2019.

Featured image from Shutterstock.

Russia’s Largest Bank Conducts First Blockchain Payment Transaction

Russia’s Largest Bank Conducts First Blockchain Payment Transaction

Announcements, Blockchain | December 5, 2017 br>By:

Russia’s Sberbank has conducted the country’s first payment transaction using the blockchain technology. The participants involved in the pilot include MegaFon, MegaLabs, Alfa-Bank, and IBM.

The Russian bank said the blockchain payment transaction used the IBM Blockchain platform on the basis of HyperLedger Fabric, an open source blockchain framework and one of the Hyperledger projects hosted by the Linux Foundation. The platform is designed for distributed ledger solutions, underpinned by a modular architecture delivering high degrees of confidentiality, resiliency, flexibility and scalability.

Sberbank CIB, the bank’s corporate and investment banking business, organized the blockchain payment transaction. It used the bank’s information technology (IT) infrastructure to set up a service for establishing the uniform transaction procedure, the certification center of the network, and a web app for the client with a personal account section. In addition, Sberbank and Alfa-Bank hosted the nodes of the blockchain network.

Sberbank CIB Managing Director Stella Kudachkina said the blockchain solution created by the bank has allowed them to make the first pilot payment transaction in the history of the Russian banking industry. She added that the advantage of using this technology when performing settlements is the high speed at which transfers are made.

“After the money is sent the transaction is recorded on the receiver’s account almost instantly, in real time, unlike the traditional system that is used to make transfers,” said Kudachkina.

Sberbank is a state-owned Russian banking and financial services company headquartered in Moscow. The company has operations in several European and post-Soviet countries. It is the largest bank in Russia and Eastern Europe, and the third largest in Europe.

In April, the R3 blockchain consortium denied the application of the bank to join the rest of the banks in the consortium due to international sanctions against Russia. In October, Sberbank joined the Enterprise Ethereum Alliance, becoming the first Russian bank to join the distributed ledger consortium.

Related:

Russia’s Sberbank conducts blockchain-based payment transaction

Sberbank, one of the largest banks in Russia, has announced that it has conducted the country’s banking industry’s first-ever pilot blockchain payment transaction.

The participants involved in the pilot include MegaFon, MegaLabs, Alfa-Bank, and IBM. The transaction used the IBM Blockchain Platform on the basis of HyperLedger Fabric. Sberbank joined the Linux Foundation’s Hyperledger blockchain project in 2016.

The blockchain-based payment transaction was organized by Sberbank CIB, the bank’s corporate and investment banking business. It used the bank’s IT infrastructure to set up a service for establishing the uniform transaction procedure, the certification centre of the network, and a web app for the client with a personal account section. In addition, Sberbank and Alfa-Bank hosted the nodes of the blockchain network.

In its official release, Sberbank said that the technological process which was created will serve as the primary scenario for developing a new settlement function.

“The blockchain solution created by Sberbank has allowed us to make the first pilot payment transaction – using IBM Blockchain technology – in the history of the Russian banking industry,” commented Sberbank CIB Managing Director Stella Kudachkina. “Above all, the advantage of using this technology when performing settlements is the high speed at which transfers are made: after the money is sent the transaction is recorded on the receiver’s account almost instantly, in real time, unlike the traditional system that is used to make transfers.”

Earlier in June, Sberbank announced its cooperation with Severstal to carry out international letter of credit transactions using blockchain technology.

EconoTimes 中文版 经客时代已上线

深入了解中国动向

开始阅读 >

Econotimes China Edition

GET INSIGHTS IN CHINESE

READ NOW >

Related: