Alina Akchurina, Managing Director for Collateral Management Systems at the NSD

Russian financial services company Sberbank has teamed up with the National Settlement Depository (NSD) and Brokerage Company Region to enter into world’s first three-way repo deal using blockchain technology.
The arrangement uses the NSD’s Collateral Management System which allows a repo deal’s participants to automate the settlement procedure. With NSD acting in a settlement role, Sberbank was seller and BC Region the buyer.
“The first three-party repo executed using a smart contract on a blockchain network is the latest in a number of steps to automate Sberbank’s business processes for working with counterparties on financial markets,” said Andrey Shemetov, Vice President of Sberbank and Head of its Global Markets Department. “The combination of smart contracts and distributed register technology makes financial contracts more transparent and increases security for both clients and the bank. 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. 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.
“Using blockchain to service repo deals is one of the few examples that justify the use of this technology,” said Alina Akchurina, Managing Director for Collateral Management Systems at the NSD.

by Guy Matthews