An Indian bank, YES Bank has completed an issuance of corporate debt using blockchain built by Monetago on R3’s Corda. The transaction worth Rs 1 billion rupees ($14.5 million) was carried out on behalf on the Indian NGO Vedanta and used distributed ledger technology to share documentation electronically among all parties involved, which removed the need for unnecessary paperwork.
According to news portal Finextra, Asit Oberoi, senior group president and global head transaction banking group, YES Bank was quoted as saying, “Apart from reducing operational risk and costs, this technology lays the foundation for a more transparent and time-effective solution for the future of India’s Commercial Paper market.” He further added that there would be more transactions to follow in the coming months.
However, this is not the first time, the bank has carried out a blockchain-related transaction. Last year in February, Yes Bank made the first commercial deployment of an enterprise blockchain solution in India and the second bank in the world to do so.
According to a business journal, Yes Bank uses Hyperledger DLT (Distributed Ledger technology) to deploy the R&D project for Bajaj Electricals. The implementation has been done on a blockchain-based smart contract written by fintech start-up Cateina Technologies. They now plan to add 35 vendors of Bajaj Electricals onto this platform to transact on both sides—dealer finance and vendor finance.
At the time, Rana Kapoor, CEO of Yes Bank had said, “Cryptocurrencies will be here forever. We will have imperfections. There’ll be regulatory restrictions. There’ll be a overall process which has to be followed and a system which has to be built with credibility. No currency system is an offset to the monetary system.”
Kapoor had added that the budget had also rightly emphasized on the need to focus on future technologies through establishment of centers of excellence in key areas like robotics, artificial intelligence, big data, quantum computing and IoT.