One of India’s largest private banks, YES bank has recently issued Asia’s first Commercial Paper with the help of blockchain technology.
The issuance happened for Vedanta Limited, a large natural resource conglomerate in India.
According to the bank’s representatives, the use of the blockchain platform was a breath of fresh air as it simplified protocols which were previously quite hectic for both parties involved.
The reports say that there were four main points that the blockchain managed to improve.
- One of them was the TAT (Turnaround Time) between the issuance and the redemption process.
- Visibility and transparency of the Commercial Paper issuance process for all parties involved.
- Common network for parties involved
- Significantly reduced operational risks due to immutable documents
The transaction was completed through the help of MonetaGO, a US-based fintech provider.
According to YES bank representatives, the transaction was one of the most fluid they’ve ever had as the process went without any flukes and quite fast indeed.
MonetaGO commended the entities for their efficiency in adopting such a complicated platform in such a small amount of time.
All parties involved hope that this becomes a repeating process for new companies joining the mix soon and promoting the popularity of blockchain in India’s banking sector.