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Russia-based VTB to issue bank guarantees via blockchain

Tuesday 22 December 2020 13:11 CET | News

VTB, the Russia-based bank, has piloted a new blockchain-based system to issue bank guarantees.

As part of the development, the bank issued the country’s mobile cellular network MTS a guarantee for the fulfilment of payment obligations worth USD 5 million. The commercial operation implemented Masterchain — an Ethereum-based blockchain prototype backed by the Russian central bank.

Introduced in 2016, Masterchain is a blockchain platform certified in Russia, using local cryptographic data protection methods. The platform was developed by the Russian Fintech Association alongside the Bank of Russia and financial players like Sberbank, Alfa-Bank, Tinkoff Bank and Qiwi.

The new integration has the potential to allow the bank to speed up the process of issuance guarantees and reduce paperwork. Blockchain deployment can eliminate the risks of fraud associated with bank guarantees.

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Keywords: VTB, Russia, banking, blockchain banking, bank guarantees, MTS, Masterchain, Ethereum, Russian Fintech Association
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: Russian Federation
This article is part of category

Blockchain & Cryptocurrencies