Russia's largest bank buys $15 million in debt through blockchain, achieving a “seamless connection” between banks and companies

According to Coindesk's September 13 report, Russia's largest bank, the Russian Federal Savings Bank (Sberbank), purchased a $15 million worth of receivables from the Singapore-based commodity trading giant Trafigura Group through the use of blockchain. item.

Sberbank_Europe (Source: WikiMedia )

A spokesperson for the bank said the pilot deal was conducted on the Hyperledger Fabric platform. It leverages Fabric's private data collection feature, which maintains the confidentiality of specific data sets in a subset of network participants.

The Russian Federal Savings Bank trial system uses smart contracts written in Scala and uses the Aurelia framework and its own cloud solution, SberCloud. The company claims that it takes only one second to generate a complete trading block.

At the Eastern Economic Forum held in Vladivostok, Russia last week, Alexander Vedyakhin, the first deputy governor of the Russian Federal Savings Bank, disclosed the deal, but did not disclose the size and technical details of the transaction.

The accounts receivable of the Russian Federal Savings Bank were owed to a large group of customers from Turkey.

Vedyakhin said in a news statement that the technology helps to increase the efficiency of the document and shortens the time required to complete a transaction from one day to one hour.

Vedyakhin said:

Our blockchain pilot project records every step of the transaction: requiring payment of accounts receivable, application processing, bank approval, bank quotation, Toke Group confirmation terms, and settlement of the transaction.

Evolving technology

The Russian Federal Savings Bank said that the pilot project showed that the blockchain technology is relatively mature and also proves the value of the technology to the enterprise:

What we saw in 2019, especially through this pilot project, the blockchain is a technology that continues to evolve from a promising but untapped technology to a more advanced and mature solution that is ready to be implemented. Its initial subversive vision.

In addition, a bank spokesperson added that the Russian Federal Savings Bank and the Trafigura Group are considering expanding the use of blockchain technology in global trade finance.

The two companies are discussing how to use this technology for other use cases, a spokesperson for the Trafigura Group told CoinDesk:

The deal was seamlessly connected between the Russian Federal Savings Bank and the Trafigura Group.

Previously, the blockchain laboratory of the Russian Federal Savings Bank used the Hyperledger Fabric when investigating distributed ledgers. In November last year, the bank reached an off-market repurchase agreement with the Cyprus branch of the Russian investment company Interros.

In 2017, the Russian Federal Savings Bank launched another pilot project involving the use of Fabric to record payments from Russian companies MegaFon, MegaLabs and Russian Alpha Bank on the distributed ledger of Hyperledger Fabric.

The Russian Federal Savings Bank is also a member of the Financial Technology Association. The association is an alliance supported by the Russian Central Bank to develop the Masterchain based on the Ethereum enterprise platform.