Colombia Pioneers Bond Issuance With Blockchain Technology

Bogota – Colombia’s Financial Superintendence -SFC- provided the balance of the first pilot test for bond issuance Using blockchain technology built exclusively in the controlled space of Laurenera.

The purpose of this test, which is The first of its kind in this area was to observe the impact of Distributed Registry Technology – DLT – Using smart contracts, a non-fungible token and encryption algorithms throughout the life cycle of bonds in the second market in terms of operational cost, time, traceability, documentation and information asymmetry towards participants.

For this reason, this first pilot was classified as successful after negotiating issuance, along with authorization, initial registration and subsequent cancellation, at the National Registry of Securities and Issuers (RNVE). Payment registration and compliance done completely with blockchain technology in an agile and secure manner.

Throughout the negotiation cycle in the Colombian capital market, the reduction in efficiency and cost in time was evident. Additionally, all participants had the opportunity to audit the entire process in real time.

this is the first broadcast Subscribed by Banco Davienda for $110 million and acquired through a transaction by IDB Invest Done in the LACChain blockchain network, SFC and Banco de la Repubblica were permanently monitored through observation nodes and logistical and regulatory support from the IDB Group.

Pilot test achievements

The results obtained in the test constitute a basis for the analysis of the existing market infrastructure, certifying the potential of distributed registry technology for integration of various platforms. Involved in securities market issues, of which SFC is a part.

This experience also contributes to the diagnosis of the current regulation applicable to this class of processes and, along with the lessons learned, is an input to public policy that will allow the stock market to prevail.

It should be noted that the use of blockchain technologies already has applications around the world, highlighting that World Bank, ComBank launch Bond-i platform using Ethereum network In August 2018 (which raised AUD110 MM in two years of operation), Banco Santander issued the first USD20 MM bond using the public Ethereum network in September 2019 and, most recently, its first digital one by the European Investment Bank for €100MM. Bonus issued. Also using public Ethereum network in April 2021.

LaRenaira: Sandbox Dell Supervisor

frame is Provided in SFC for testing technological innovations applicable to financial services and the stock or insurance market in a controlled and supervised location.

This scenario allows SFCs to strike a balance between comprehensive supervision of supervised entities, prevention of crisis situations, an adequate regulation aimed at illegal practice. Promotion and support of new technological advances applicable to financial activity and financial services.

Be the first to comment

Leave a Reply

Your email address will not be published.