Bogota – The Colombian Financial Supervisory Authority -SFC- has handed over the balance of the first beta test of the bond issue Exclusively using blockchain technology made in the controlled area of LaArenera.
The aim of this test is Forming the first of its kind in the region, it was to monitor the impact of distributed recording technology – DLT The use of smart contracts, non-fungible token and cryptographic algorithms throughout the bond lifecycle in the second market in terms of operational costs, times, traceability, authentication, and information asymmetry towards participants, among others.
For this reason, this first pilot has been rated as successful, since licensing, initial registration and subsequent revocation in the National Register of Securities and Issuers (RNVE), as well as issuance and negotiation, Payments and compliance are fully logged using blockchain technology in a flexible and secure manner.
During the entire negotiation cycle in the Colombian capital market, time efficiency and cost reduction were evident. In addition, all participants had the opportunity to audit the entire process in real time.
This is the first broadcast Subscribed by Banco Davivienda for $110 million and acquired by IDB Invest in a deal In the LACchain blockchain network, it had permanent monitoring of SFC and Banco de la República through the IDB Group’s monitoring, logistical and regulatory support nodes.
Beta Test Achievements
The results obtained in the test form the basis for analyzing the existing market infrastructure, demonstrating the ability of distributed logging technology to integrate different platforms. Participation in securities market issues, including operations of which the SFC is a part.
This experience also contributes to the diagnosis of the current regulation applied to this class of operations and, in addition to the lessons learned, is an input to public policy that will allow the stock market to be strengthened.
It is worth noting that the use of blockchain technologies already has applications around the world, which highlights the The launch of the Bond-i platform using the Ethereum network by the World Bank CommBank In August 2018 (which raised A$110 million in two years of operation), Banco Santander issued its first $20 million bond using the public Ethereum network in September 2019, and most recently, the European Investment Bank issued its first €100 million digital reward as well. Using the public Ethereum network in April 2021.
laArenera: Overseer’s Sandbox
is frame Presented at the SFC to test technological innovations applied to financial services And the stock market or insurance in a controlled and supervised space.
This scenario allows the FSA to maintain a balance between appropriate regulation aimed at implementing comprehensive supervision of supervised entities, preventing crisis situations, and illegal practice Financial activity and the promotion and support of new technological developments applied to financial services.
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