YES Bank implements Asia’s first commercial paper issuance on Blockchain

File Photo: A security guard stands outside a closed Yes Bank branch in New Delhi

YES Bank, India’s fourth largest private sector bank, as an issuing and paying agent, facilitated the issuance of a Commercial Paper (CP) of INR 100 Crores using Blockchain technology for Vedanta Limited, a natural resources conglomerate. This is the first time in Asia that a CP has been digitally issued using Blockchain technology.

The digital solution ensures an efficient, transparent and secure mechanism for CP issuance and redemption. This transaction was completed in partnership with MonetaGo, a leading provider of financial technology headquartered in New York, USA.

As part of the business solutioning, the stakeholders in the CP issuance and redemption benefit from:

• Reduction in Turnaround Time (TAT) for issuance and redemption
• Immutable digital records of the entire transaction documents thereby reducing operational risk
• Real-time Visibility of the CP issuance and redemption
• Common Network for all participants in the CP issuance and redemption process

GR Arun Kumar, Group CFO, Vedanta Group, said, “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.”

Jesse Chenard, CEO, MonetaGo, said, “This is a real milestone for our company, for the technology, and for the Indian Banking Community. We have 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.”