Russia Issues First Yuan-Denominated Blockchain Bank Guarantee

Moscow Credit Bank (MCB) issued the first digital bank guarantee worth more than 100 million yuan. The deal was executed on the Masterchain blockchain platform.

The digitally signed bank guarantee, agreed by all three interested parties, allows the beneficiary not to wait for the paper version or to request verification through the bank. The blockchain preserves the original.

The issued bank guarantee is denominated in yuan, as importer contracts are linked to the Chinese currency. In the event of a payout under the guarantee, the supplier will receive rubles at the rate agreed by the parties.

MCB noted that the solution would be particularly relevant for large corporations that regularly handle a large volume of bank guarantees.

Earlier in December 2022, the Lighthouse fintech platform completed a deal with CFA worth 58 million yuan (500 million rubles), secured by trade receivables.