Private-sector lender Yes Bank on Thursday said that it has facilitated the issuance of commercial paper worth Rs 100 crore ($14.6 million at current exchange rate) using blockchain for natural resources conglomerate Vedanta Ltd.
Yes Bank claimed that the blockchain transaction, processed with the help of US-based enterprise software firm MonetaGo, is the first of its kind in Asia.
“Apart from reducing operational risk and costs, this technology lays the foundation for a more transparent and efficient process to cater to India’s growing commercial paper market,” Asit Oberoi, senior group president and global head of transaction banking group and chief experience officer, Yes Bank, said.
MonetaGo has said that it had built the software platform for such transactions using open-source blockchain platforms provider Corda’s technology.
The company further said that its solution would help in the reduction of turnaround time for issuance and redemption of a commercial paper as well as create and maintain immutable digital records of the entire transaction documents, thereby reducing operational risk and providing real-time visibility of the entire process.
“Vedanta will benefit from the digitised and simplified workflow, which shortens the hours-long laborious process to just a few minutes,” GR Arun Kumar, group chief financial officer at Vedanta Group, said.