Masterchain and VTB Factoring to Issue Joint Digital Financial Assets

The blockchain platform Masterchain, VTB Factoring and GetFinance, the unified factoring platform, plan to issue digital financial assets (DFAs) and use them to form digital portfolios of obligations. Representatives of the companies told ForkLog.

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In the first stage, the partners created an obligations converter that selects, classifies and forms a pool of monetary claims for subsequent issuance of DFAs.

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“The digital portfolios of obligations are formed on the Masterchain blockchain network and protected from alterations, which helps guarantee transparency and security of future deals,” the developers said.

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In the second stage, for the portfolios of monetary claims under factoring, DFAs are planned to be issued for their secondary circulation until repayment.

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The operator of the information system will be the Distributed Registry Systems company. VTB Factoring will act as the factoring provider and – in the future – as the first issuer of DFA for a portfolio of accounts receivable from large customers. GetFinance LLC will perform the role of exchange operator through the GetFinance platform.

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According to the partners, the service will allow packaging into a portfolio not only the monetary claims assigned to VTB Factoring and other factoring companies operating on GetFinance, but also other financial obligations to other market participants.

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“For large businesses, the introduction of DFAs is an additional tool for managing capital costs; for fintechs and factors – a new market niche and the possibility to attract rapid capital for further growth of the business; for small and medium-sized enterprises – increased access to financing; for investors – a new instrument for placing funds with moderate risk,” said Anton Musatov, CEO of VTB Factoring.

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As a reminder, the Law on Digital Financial Assets came into force on 1 January 2021. The Bank of Russia maintains registers of information-system operators for issuing DFAs and exchange operators.

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In October 2019, the Masterchain blockchain platform received a certificate from the FSB of the Russian Federation attesting to the use of Russian cryptography standards and compliance with information-security requirements.

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In September 2021, the Russian government approved the use of Masterchain for data exchange as part of digital mortgage experiment.

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