Sberbank claims world first three-way repo deal using blockchain tech

Russia’s Sberbank has worked with the National Settlement Depository (NSD) and Brokerage Company Region to complete the world’s first three-way OTC repurchase agreement, or repo, using blockchain technology.

“This is the latest in a number of significant steps to automate Sberbank’s business processes for working with counterparties on financial markets. The combination of smart contracts and distributed register technology makes financial contracts more transparent and increases security for both clients and the bank,” says Andrey Shemetov, Vice President of Sberbank and Head of the Global Markets Department.

“We are confident that the market will adopt our technology as a new standard for carrying out OTC repo deals and market players will appreciate all the advantages it offers.”

The deal involved a rouble-denominated OTC repo secured by federal loan bonds (OFZs). From a legal point of view, the deal is governed by Russian law and is a binding financial contract that was signed electronically using a smart contract and e-signatures via the CMS of the NSD.