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Yes Bank uses blockchain for commercial paper issue

India’s Yes Bank announced that it successfully completed the issuance of corporate debt using blockchain built by fintech MonetaGo on R3’s Corda Enterprise technology. The transaction marks the first time in Asia that a commercial paper (CP) has been digitally issued using blockchain technology.

The one billion rupees (INR) – equivalent to US$14.5 million – transaction was carried out on behalf of Indian conglomerate Vedanta and used distributed ledger technology (DLT) to share documentation electronically among all parties involved and avoiding the lengthy paperwork that traditionally has applied to such transactions.

Estimates suggest that the continuing manual issuance in India of commercial paper involves around one million emails or phone calls and 300,000 couriers annually.

Commenting on the success of the digital issue, Vinod Bahety, senior president of wholesale banking for the Mumbai region at YES Bank said, “We are pleased to partner with Vedanta and this first-of-its-kind transaction reaffirms the bank’s strong commitment to bringing customised financial solutions through innovative practices and knowledge banking approach to the infrastructure sector.

“We believe that such pioneering solutions will significantly ease the commercial paper issuance process for regular issuers.”

More to come

Colleague Asit Oberoi, the bank’s senior group president and global head transaction banking group, Yes Bank, added: “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 CP market.”  He said further such transactions will follow over the months ahead.

MonetaGo CEO, Jesse Chenard, said: “This is a real milestone for our company, for the technology, and for the Indian banking Community."

“We've been working with Yes Bank and Vedanta very closely and have been continuously impressed with their ability to leverage technology to bring about large scale change. These are big corporations with the ability to move like start-ups – something very rare indeed especially when dealing with a market this size.”

MonetaGo moved to Corda Enterprise in February, joining R3's growing ecosystem of over 300 companies utilising Corda to build applications for a variety of uses across different industries.

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This item appears in the following sections:
Bank Relations & KYC
electronic Bank Account Management
Cash & Liquidity Management
Cash & Liquidity Mngm in Asia-Pacific
Dealing & Trading

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