Yes Bank has facilitated the issuance of a commercial paper (CP) of Rs 100 Crore using blockchain technology for Vedanta Ltd, a natural resources conglomerate. This is the first time in Asia that a CP has been digitally issued using Blockchain technology.
Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities. Maturities on commercial paper rarely range longer than 270 days.
The digital solution ensures an efficient, transparent and secure mechanism for CP issuance and redemption. The blockchain implementation for the issuance of CPs will help reduce the turnaround time for issuance and redemption, operational risk, and will increase the real-time visibility by providing a common network for all participants.
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 a few minutes and complete transparency that this platform offers to all stakeholders.”
Asit Oberoi, Sr Group President and Global Head Transaction Banking Group and Chief Experience Officer, Yes Bank, said, “This solution is a yet another milestone in Yes Bank’s endeavor to remain ahead of the innovation curve & enhance end client experience. Apart from reducing operational risk and costs, this technology solution lays the foundation for a more transparent and efficient process to cater to India’s growing Commercial Paper market.”
This transaction was completed in partnership with MonetaGo, a provider of financial technology headquartered in New York. MonetaGo built the solution using Corda Enterprise, technology provided by R3, a leading enterprise Blockchain software firm.
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.”
Yes Bank is constantly banking on innovations to offer its retail customers and corporate clients superior and efficient services, coupled with its digital transformation efforts. Recently, the bank organized a Datathon program to explore banking solutions deploying cutting edge technologies such as AI, ML, big data and blockchain.
The Bank also has a number of digital initiatives such as Y-Pep and Yes Fintech, besides running Yes Scale acceleration program, all aimed towards offering unparalleled customer experience.