MonetaGo Facilitates Issuance Of First Commercial Paper Via Blockchain In Asia

Enterprise level financial technology solutions provider MonetaGo has revealed the issuance of an Indian natural resources giant’s commercial paper in digital form using blockchain technology.

MonetaGo finished the deal via collaboration with banking services offered by Yes Bank and the commercial paper issuer Vedanta.

India’s $500 billion commercial paper market is heavily regulated, involving completion of complex documentation by the issuing enterprise before a transaction commences.

Commercial paper issuance continues to rise sharply as enterprises look for funds to address their short-term cash needs. However, the lack of a simple electronic process has turned the process of issuing commercial papers a complex process that results in wastage of several man hours.

In the aforementioned case, the deal was completed using R3’s Corda Enterprise technology, alongside a well-planned bunch of systematic workflows to arrive at a solution that can be quickly adopted to different markets and regions.

Back in Febrausy, MonetaGo shifted to Corda Enterprise, partaking in the R3’s widening ecosystem that includes more than 300 diverse firms utilizing Corda to develop applications for a variety of uses across different sectors.

Regarding the implementation, Asit Oberoi, Senior Group President and Global Head Transaction Banking Group and Chief Experience Officer, Yes Bank, stated “Yes Bank is proud to implement Asia’s first Commercial Paper issuance over Blockchain technology for the Vedanta Limited. This solution is a yet another milestone in Yes Bank’s endeavor to remain ahead of the innovation curve and 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.”

Commenting on the benefits of digitization using blockchain technology, GR Arun Kumar, Group CFO, Vedanta, 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.”

Regarding the initiative taken by Yes Bank and Vedanta, 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 Rutter, CEO of R3, has stated “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.”