Kazakhstan to Sell Securities via Blockchain

Announcements, Blockchain, FinTech, Innovation, Regulation | June 14, 2017 By:

The National Bank of Kazakhstan, the country’s central bank, is planning to sell its short-term notes to retail investors via a blockchain-based mobile app.

The mobile app will enable citizens to directly buy notes with a face value of 100 tenge (about $0.3) with no commission and no brokers involved. Blockchain will play a role in accounting executed deals and ensuring safety and inalterability of information on transactions.

The system will make sure that the purchase or sale of short-term notes will be carried remotely without the requirement of a personal visit to a financial institution by a physical entity. Electronic money will be used to settle all transactions, the release stated. The bank said it planned to launch the app in the second half of this year.

In the future, the blockchain solution could be used to facilitate initial public offerings (IPOs). The central bank stated that it will also look to work with the country’s banking sector on future versions and uses.