Blockchain technology remains one of the hottest trends among financial, government and commercial organisations worldwide. ForkLog magazine offers an overview of the most interesting recent initiatives.
VTB and MTS completed a deal to issue a bank guarantee through the Russian blockchain platform Masterchain
VTB became the first bank in Russia to issue a digital bank guarantee in live operation on the Russian blockchain platform Masterchain.
According to the press release, the performance guarantee for 392 million rubles was issued in favour of the telecommunications company MTS.
The operation was performed in real time; VTB issued the digital guarantee, signed with an enhanced qualified electronic signature, and MTS accepted the document by sending the bank a corresponding notification.
“As part of its digital transformation, VTB is creating IT services that simplify and accelerate the bank’s interactions with clients. We were the first in Russia to bring our technological systems into line with the Masterchain platform’s requirements and to launch industrial issuance of electronic bank guarantees,” said Vadim Kulik, Deputy President and Chairman of the Management Board of VTB.
He noted that the solution speeds up the process for beneficiaries to obtain guarantees, reduces paper-based documentation, and mitigates fraud risks.
The Palladium Fund of Nornickel issued the first tokens
The Global Palladium Fund, established by Nornickel, issued the first tokens to digitise a portion of the mining and metallurgical company’s contracts with its industrial partners.
According to the press release, the move to digital trading instruments will improve efficiency and transparency across the entire supply chain.
Global Palladium Fund issued tokens on the blockchain platform Atomyze, operated by the Swiss company Tokentrust AG.
The first counterparties were Nornickel’s long-standing partners – international commodity traders Traxys and Umicore.
German authorities approved storing stock transaction records on the blockchain
The German government approved a bill, which makes fully electronic securities legal within a broader blockchain strategy.
Previously the law required issuers and holders of securities to document deals only with paper certificates.
“The future belongs to the electronic version of the paper certificate. It reduces costs and administrative burden,” said Finance Minister Olaf Scholz.
The law allows replacing the paper certificate with an entry in the central securities depository. A blockchain-based registry entry is also possible.
Sberbank connected to the Waves Enterprise blockchain
Sberbank tested the interoperability between its corporate platform based on Hyperledger Fabric and the Waves Enterprise platform.
The mechanism implemented on Sberbank’s platform enables participants in external blockchain networks to access digital assets issued on it, and to use smart contracts and applications available in external networks for settlements against those assets.
During the piloting stage, several pilot transactions were conducted using smart contracts transferred from Sberbank’s platform to the Waves Enterprise network. Waves Enterprise conducted several transactions among different owners, after which the tokens were returned to Sberbank’s platform.
For now, the two blockchain platforms interact via a gateway, but next year interoperability mechanisms for direct interaction between the two networks are planned. Sberbank is considering the Gravity protocol and the Hyperledger Cactus framework as possible solutions.
The Palladium Fund of Nornickel issued tokens on the blockchain
Swiss-regulated cryptocurrency bank Sygnum conducted tokenisation of its shares and plans to become the first among financial institutions to conduct an initial public offering (IPO) based on DLT technology.
To issue security tokens, Sygnum uses the Desygnate platform, compatible with Switzerland’s Blockchain Act coming into force in February 2021.
The platform will enable issuers to carry out all regulatory procedures required for subsequent listing of shares.
Sygnum’s shareholder register will be constantly and automatically updated with every transaction, enabling the bank to manage primary and secondary market operations entirely digitally. This eliminates lengthy settlement processes and minimises counterparty risk. The platform will also help bypass the requirement for a written transfer of shares between buyers and sellers.
Sygnum plans to harness the smart-contract capabilities of tokenised shares to realise the full potential of investor–issuer relations.
Otkritie Factoring joined the Factorin blockchain platform
The Factorin blockchain platform for trade finance and the fintech company Otkritie Factoring entered into a partnership.
Otkritie Factoring is a subsidiary of the bank Otkritie. The company structures atypical financing arrangements for creditor and accounts receivable. More than 400 debtor companies are accredited with Otkritie Factoring.
ForkLog representatives said that moving deals to the blockchain will automate business processes.
“Partnering with the Factorin platform gives us the opportunity to increase the speed of factoring transactions and simplify the client offering for financing the platform’s partners’ accounts receivable,” said Artem Durov, CEO of Otkritie Factoring.
At the same time, the Factorin platform does not act as an intermediary and has no access to deal information — all data is available only to its participants.
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