Russian Depository To Launch Blockchain Platform In Switzerland Next Month

Blockchain, News | May 24, 2019 By:

The National Settlement Depository of the Russian Federation (NSD) is planning to launch its blockchain-based depository platform next month.

NSD is a non-bank financial institution, central securities depository, and professional securities market participant engaged in depository business. As the central securities depository (CSD) of the Russian Federation, NSD’s services cover both securities listed in Russian Federal Law No. 414-FZ dated 7 December 2011 “On the Central Securities Depository”, and other Russian and foreign equity and debt securities.

NSD Innovation Director Artyom Duvanov said that the blockchain-based depository platform, which was first announced in 2017, will be launched in June in Switzerland. Called the Decentralized Digital Depository (D3), the platform will initialy track ownership of several assets: a security token that represents unregistered shares in a small healthcare company; sora, a cryptocurrency developed by Japan’s Soramitu; and bitcoin, ethereum, and any ERC-20 tokens running on the ethereum blockchain.

Bitcoin and ethereum will be frozen on the public blockchain via smart contracts with multi-signature. The corresponding rights to the cryptocurrencies will be issued on the D3 network. In the future, D3 intends to implement support for stablecoin, which will allow over the counter (OTC) transactions with cryptocurrencies and securities.

According to Duvanov, they selected Switzerland because of the country’s amiable regulations and digital asset market-making capabilities.

“In terms of laws, [Switzerland] allows the tokenization of at least some kind of securities,” Duvanov said. “That’s the first thing. And it’s favorable for such things because there is market demand.”