Financial technology solutions provider MonetaGo has today announced that a commercial paper has been digitally issued in Asia for the first time using blockchain technology.
MonetaGo completed this transaction through a partnership with banking services provided by YES Bank and the issuer Vedanta, a natural resources conglomerate.
India’s highly-regulated commercial paper market involves huge amount of paperwork to be prepared by the Issuer for every transaction.
Issuances are on the increase as more businesses manage their short term cash needs through this products however absence of a streamlined digital process makes this entire process cumbersome resulting in many man hours being wasted.
The transaction was delivered using R3’s Corda Enterprise blockchain platform, along with a robust set of standardized workflows to deliver a solution that will rapidly scale across markets and geographies.
MonetaGo moved to Corda Enterprise in February 2019, joining R3’s growing ecosystem of over 300 diverse companies utilising Corda to build applications for a range of uses across different industries.
Speaking on the implementation, Mr. Asit Oberoi, Senior Group President and Global Head Transaction Banking Group, YES BANK, said, “YES BANK is proud to implement the Asia’s first fully digitised Commercial Paper issuance for the Vedanta Group and we are thankful to our partners. This solution is a yet another milestone in YES BANK’s endeavor to remain ahead of the innovation curve and offer a slew of new-age innovative services to clients in this new and connected world. 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.”
GR Arun Kumar, Group CFO, Vedanta, notes that “Vedanta will benefit from the digitized and simplified workflow which shortens the laborious process running into hours to just few minutes and complete transparency that this platform offers to all stakeholders.”
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.”
David E. Rutter, CEO of R3, comments: “The issuance of these instruments is a complex process and current models have long been recognized as being inefficient. Enabling parties to collaborate and maintain accurate shared records of the underlying agreements is precisely what Corda is great at doing. This marks a big step forward for the industry and demonstrates clear advantages of over existing processes.”