Indian Regulator Launches Blockchain-Based Debt Issuance Platform – Bits Media

Securities and Exchange Commission of India (SEBI) to 1 april 2022 will introduce a blockchain-based system for issuing and monitoring non-convertible debt.

SEBI
informed, that the system will store information about the terms of debt agreements, but also track the credit ratings of organizations. Платформа предназначена для попечителей, bond issuers and credit reporting agencies, who will be able to update data.

They will be available for stock exchanges and depositories, which will increase the transparency of all work processes. The saved data will have a cryptographic signature and a time stamp. Transaction history and data, stored in a distributed registry, will be encrypted and made available only to interested parties.

SEBI management reported, which is ready to follow the example of other large institutions, using distributed ledger technology (DLT) to improve the efficiency of their systems. SEBI considers, that this initiative will be a significant step in the implementation of blockchain in the financial ecosystem of India.

“DLT will provide a more sustainable system, compared to traditional centralized databases. Due to the distributed nature, it will better protect data from various cyberattacks ", - said the department.

Commercial and even central banks are exploring the potential of blockchain in the debt market. Last year, the South Korean Central Bank reported, what is working to create a system for issuing bonds on the blockchain. Besides, in 2018 году банковский холдинг JPMorgan Chase совместно с Goldman Sachs Asset Management тоже протестировали платформу для оформления долговых обязательств с использованием блокчейна.